New Issue: Service King prices $75 million tap of 7 7/8% notes due 2022 at 99.25 to yield 8.029%

By Paul A. Harris

Portland, Ore., Aug. 11 – Service King priced a $75 million add-on to the Midas Intermediate Holdco II LLC/Finance Inc. 7 7/8% senior notes due Oct. 1, 2022 (Caa1/CCC+) at 99.25 to yield 8.029% on Thursday, according to market sources.

The reoffer price came at the rich end of price talk in the 99 area.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Macquarie Capital and Blackstone were the joint bookrunners for the quick-to-market deal.

The Dallas-based operator of a chain of collision repair shops plans to use the proceeds for general corporate purposes.

Issuer:	Midas Intermediate Holdco II LLC/Finance Inc. (Service King)
Face amount:	$75 million
Proceeds:	$74,437,500
Maturity:	Oct. 1, 2022
Security description:	Add-on to 7 7/8% senior notes due Oct. 1, 2022
Bookrunners:	J.P. Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Macquarie Capital, Blackstone
Coupon:	7 7/8%
Price:	99.25
Yield:	8.029%
Spread:	671 bps
Call:	Make-whole call at Treasuries plus 50 bps until Oct. 1, 2017 then callable at 103.938
Equity clawback:	40% at 107.875 prior to Oct. 1, 2017
Trade date:	Aug. 11
Settlement date:	Aug. 16
Ratings:	Moody's: Caa1
	S&P: CCC+
Distribution:	Rule 144A
Price talk:	99 area
Marketing:	Quick to market
Original issue:	$200 million priced at par in September 2014
Previous add-on:	$100 million priced at 96 to yield to 8.596% in February 2015
Total issue size:	$375 million

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