By Paul A. Harris
Portland, Ore., July 17 – Domestic & General Group Ltd. priced a restructured a £635 million equivalent amount of high-yield notes in three tranches, according to a market source.
Issuing for the secured tranches (B2/B), Galaxy Bidco Ltd. priced £305 million of seven-year fixed-rate notes at par to yield 6½%. The yield printed at the wide end of the 6¼% to 6½% yield talk.
Galaxy Bidco also priced a €200 million tranche of Euribor plus 500 basis points senior secured floating-rate notes priced at par. The spread came at the wide end of the Euribor plus 475 bps to 500 bps spread talk. The euro-denominated floating-rate notes replaced a proposed sterling-denominated floater that had been talked with a 550 bps to 575 bps spread to Libor.
Issuing the sole unsecured tranche (Caa1/CCC+), Galaxy Finco Ltd. priced £150 million of 9¼% eight-year senior notes at 95.922 to yield 10%. The yield printed in the middle of final yield talk in the 10% area, which was widened from the earlier talk of 8¾% to 9%.
Sole physical bookrunner and global coordinator Barclays will bill and deliver.
Proceeds will be used to fund the acquisition of the Bedworth, England-based home-appliance warranty provider by CVC Fund VII and the Abu Dhabi Investment Authority and to refinance debt.
| Company: | Domestic & General Group Ltd.
|
| Amount: | £635 million equivalent
|
| Physical bookrunner: | Barclays (bill and deliver)
|
| Global coordinators: | Barclays, BofA and Credit Suisse
|
| Joint bookrunners: | Lloyds, Mizuho and NatWest
|
| Trade date: | July 17
|
| Settlement date: | July 31
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Issuer: | Galaxy Bidco Ltd.
|
| Maturity: | July 31, 2026
|
| Ratings: | Moody's: B2
|
| S&P: B
|
|
|
| Fixed-rate notes
|
| Amount: | £305 million
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 589 bps
|
| Call protection: | Three years
|
| Price talk: | 6¼% to 6½%
|
|
|
| Floating-rate notes
|
| Amount: | €200 million
|
| Coupon: | Euribor plus 500 bps
|
| Price: | Par
|
| Call protection: | One year
|
| Price talk: | Euribor plus 475 bps to 500 bps
|
|
|
| Senior unsecured notes
|
| Issuer: | Galaxy Finco Ltd.
|
| Amount: | £150 million
|
| Maturity: | July 31, 2027
|
| Coupon: | 9¼%
|
| Price: | 95.922
|
| Yield: | 10%
|
| Spread: | 933 bps
|
| Call protection: | Three years
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Price talk: | 10% area, revised from 8¾% to 9%
|
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