Service King to price $100 million add-on to 2022 notes on Tuesday

By Paul Deckelman

New York, Feb. 2 – Service King Collision Repair Centers is expected to price a $100 million add-on to the 7 7/8% senior notes that it sold last September, high-yield syndicate sources said Monday.

The add-on is expected to price on Tuesday.

The sources said that the same investment banks that handled the original pricing will bring the add-on issue to market – joint bookrunners J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Macquarie Capital.

Service King, a Richardson, Texas-based auto collision repair shop chain operator, priced the original $200 million issue of eight-year senior notes (Caa1/CCC+) at par on Sept. 19 to yield 7 7/8% after marketing the deal to investors via a roadshow.

The yield on that deal printed at the tight end of yield talk set in the 8% area.

The issuing entity was special purpose vehicle Midas Intermediate Holdco II LLC/Finance Corp.

Proceeds of the offering were slated to help fund the Blackstone Group LP’s acquisition of a 55% stake in Service King from the Carlyle Group.

The add-on will carry the same terms as the original issue, including call protection until Oct. 1, 2017, at which time the bonds will be callable at 103.938, as well as an equity clawback provision allowing the repurchase of up to 40% of the notes 107.875, using equity proceeds, until Oct. 1, 2017.

Paul A. Harris contributed to this story

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