Dun & Bradstreet upsizes bond offering to $1.45 billion, tweaks tranches and talk; pricing Friday

By Paul A. Harris

Portland, Ore., Feb. 1 – Dun & Bradstreet Corp. upsized its tranche of senior secured notes and tightened the talk, while downsizing its concurrent unsecured notes offering and bank loan on Friday, according to market sources.

Talk on an upsized $700 million tranche of 7.5-year senior secured notes (B2/B/BB) tightened to the 7% area from the 7¼% area; initial guidance in the was in the mid 7% area.

The tranche size was increased from $500 million.

The secured notes are playing to $3 billion of orders, a trader said.

BofA Merrill Lynch is the lead bookrunner for the secured notes tranche.

A downsized $750 million tranche of eight-year senior unsecured notes (Caa2/CCC/B-) remains talked to yield 10% to 10¼%, tighter than initial guidance in the 10¼% to 10½% area.

The tranche size decreased from $850 million.

Citigroup Global Markets Inc. is the lead bookrunner for the unsecured notes tranche.

The deadline for recommitments for all of the notes was set at noon ET on Friday.

Overall, the two-part bond offering increased to $1.45 billion from $1.35 billion, while the bank loan decreased to $2.53 billion from $2.63 billion.

The bank loan was also heard to be playing to $3 billion of demand, the trader said.

RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, MUFG and Mizuho Securities USA Inc. join BofA Merrill Lynch and Citigroup as joint bookrunners for both tranches of bonds.

Natixis, HSBC Securities, Jefferies LLC, Macquarie Capital, Wells Fargo Securities LLC, Citizens Bank, Houlihan Lokey and SMBC Nikko Securities America Inc. are co-managers for both tranches of bonds.

The Rule 144A for life and Regulation S notes in both tranches become callable after three years at par plus 50% of the respective coupons. They feature three-year 40% equity clawbacks at par plus the respective coupons and 101% poison puts.

The issuing entity is Star Merger Sub, Inc., which is to be merged with and into Dun & Bradstreet.

Proceeds will be used to finance the acquisition of Dun & Bradstreet by an investor group led by CC Capital, Bilcar LLC, Cannae Holdings and Thomas H. Lee Partners.

The issuing entity will be Star Merger Sub, Inc., which is to be merged with and into Dun & Bradstreet, a Short Hills, N.J.-based provider of commercial data and analytics.

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