By Paul Deckelman
New York, Feb. 3 – Service King Collision Repair Centers, through special-purpose financing subsidiaries, priced a $100 million add-on Tuesday to the 7 7/8% senior notes due 2022 (Caa1/CCC+) that it sold last September.
High-yield syndicate sources said that the notes priced at 96 for a yield to maturity of 8.596%. The issue priced a day after it first surfaced in the market.
The same investment banks that handled the original pricing also brought the Rule 144A/Regulation S add-on issue to market – joint bookrunners J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Macquarie Capital (USA) Inc.
Blackstone Capital Markets was co-manager on the transaction.
The issuing entities, Midas Intermediate Holdco II LLC and Midas Intermediate Holdco II Finance Inc., were also the same as on the original September transaction.
The add-on carries 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 at 107.875, using equity proceeds, until Oct. 1, 2017.
Service King, a Richardson, Texas-based auto collision repair shop chain operator, plans to use proceeds from the add-on for, among other things, acquisitions within its business.
The company priced the original $200 million issue of eight-year senior notes 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 that had been set in the 8% area.
Proceeds of the September offering were slated to help fund Blackstone Group LP’s acquisition of a 55% stake in Service King from Carlyle Group.
| Issuers: | Midas Intermediate Holdco II LLC and Midas Intermediate Holdco II Finance, Inc. (ServiceKing Collision Repair Centers)
|
| Amount: | $100 million
|
| Securities: | Add-on to senior notes
|
| Maturity: | Oct. 1, 2022
|
| Joint book-running managers: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Macquarie Capital (USA) Inc.
|
| Co-manager: | Blackstone Capital Markets
|
| Coupon: | 7 7/8%
|
| Price: | 96
|
| Yield to maturity: | 8.596%.
|
| Spread: | 701 basis points vs UST 1.625% due Aug.15, 2022
|
| Call protection: | Non-callable before Oct. 1, 2017, other than via a make-whole call at T + 50 bps; callable on or after Oct. 1, 2017 at 103.938% , on or after Oct. 1, 2018 at 101.969% , on or after Oct. 1, 2019 at par
|
| Equity clawback: | For up to 40% of issue at 107.875 prior to Oct. 1, 2017
|
| Change of control: | Put at 101% plus any accrued and unpaid interest
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 6 (T+3)
|
| Ratings: | Moody’s: Caa1
|
| S&P: CCC+
|
| Distribution: | Rule 144A/Regulation S
|
| Marketing: | Brief roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
