By Paul A. Harris
Portland, Ore., Feb. 19 - Modular Space Corp. priced an upsized $375 million issue of five-year senior secured second-lien notes (B3/B-/) at par to yield 10¼% on Wednesday, according to a syndicate source.
The deal was upsized from $365 million.
The yield printed at the tight end of the 10¼% to 10½% yield talk.
Initial guidance was in the 10½% area, according to a market source.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Robert W. Baird & Co. Inc. were the joint bookrunners.
The Berwyn, Pa.-based company, which sells and services modular space structures and storage containers, plans to use the proceeds to repay debt.
Issuer: | Modular Space Corp.
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Amount: | $375 million, increased from $365 million
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Maturity: | Jan. 31, 2019
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Securities: | Senior secured notes
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Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Robert W. Baird & Co. Inc.
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Coupon: | 10¼%
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Price: | Par
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Yield to worst: | 10¼%
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Spread: | 878 bps
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First call: | Jan. 31, 2016 at 105.125
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Trade date: | Feb. 19
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Settlement date: | Feb. 25
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Ratings: | Moody's: B3
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| Standard & Poor's: B-
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 10¼% to 10½%
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Marketing: | Roadshow
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