By Paul A. Harris
Portland, Ore., May 23 - England's Gala Coral Group Ltd. priced a downsized £625 million two-part offering of high-yield notes on Monday, according to an informed source.
The deal included an upsized £350 million tranche of senior secured notes due Sept. 1, 2018 (B2/B+/BB-), which priced at par to yield 8 7/8%.
The secured notes tranche was upsized from £250 million. The yield printed at the wide end of price talk, which had been set in the 8¾% area.
In addition, Gala Coral priced a downsized £275 million tranche of 11½% eight-year senior unsecured notes (Caa2/CCC+/CCC) at 97.468 to yield 12%.
The tranche was downsized from £400 million. The yield printed 37.5 bps beyond the wide end of price talk, which had been set in the 11½% area.
Credit Suisse AG and Barclays plc were the global coordinators among a syndicate of banks that includes Deutsche Bank AG, Goldman Sachs International, Morgan Stanley and HSBC.
The overall size of the bond transaction was decreased from £650 million, while the term loan B was upsized to £825 million from £800 million.
The Nottingham, England-based gaming and off-track betting company plans to use the proceeds to repay its senior secured bank loans.
| Issuer: | Gala Coral Group Ltd.
|
| Amount: | £625 million, downsized from £650 million, term loan B upsized to £825 million from £800 million
|
| Global coordinator: | Credit Suisse AG, Barclays plc
|
| Managers: | Credit Suisse, Barclays, Deutsche Bank AG, Goldman Sachs International, Morgan Stanley, HSBC
|
| Trade date: | May 23
|
| Settlement date: | May 27
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Amount: | £350 million, upsized from £250 million
|
| Maturity: | Sept. 1, 2018
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 616 bps
|
| Call protection: | Three years
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Fitch: BB-
|
| Price talk: | 8¾% area
|
|
|
| Senior unsecured notes
|
| Face amount: | £275 million, downsized from £400 million
|
| Proceeds: | £268,037,000
|
| Maturity: | June 1, 2019
|
| Coupon: | 11½%
|
| Price: | 97.468
|
| Yield: | 12%
|
| Spread: | 898 bps
|
| Call protection: | Four years
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Fitch: CCC
|
| Price talk: | 11½% area
|
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