By Paul A. Harris
Portland, Ore., April 20 – Lycra Co. priced and upsized $1 billion equivalent amount of senior secured notes (B1/B) in two tranches on Friday.
The deal, which was upsized from $810 million equivalent, included €250 million of five-year notes that priced at par to yield 5 3/8%. The yield printed at the tight end of yield talk in the 5½% area and inside of initial price talk in the 6% area.
In addition, Lycra priced an upsized $690 million of seven-year notes at par to yield 7½%. The size of the seven-year notes tranche was increased from $500 million. The yield printed at the tight end of the 7½% to 7¾% yield talk and inside of initial talk in the 8% area.
Joint global coordinator and sole physical bookrunner JPMorgan will bill and deliver. Barclays was also a joint global coordinator.
Proceeds will be used to finance the acquisition of Lycra by Shandong Ruyi Technology Group.
The issuing entities will be Eagle Intermediate Global Holding BV and Ruyi US Finance LLC.
The company makes Lycra Fiber and operates other advanced fiber technologies.
| Issuer: | Eagle Intermediate Global Holding BV and Ruyi US Finance LLC
|
| Amount: | $1 billion equivalent, increased from $800 million equivalent
|
| Securities: | Senior secured notes
|
| Joint global coordinators: | JPMorgan (physical books, bill and deliver), Barclays
|
| Trade date: | April 20
|
| Settlement date: | May 4
|
| Ratings | Moody's: B1
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| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
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| Amount: | €250 million
|
| Maturity: | May 1, 2023
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 541 bps
|
| First call: | Make-whole call at Bunds plus 50 bps until May 1, 2020, then callable at 102.688
|
| Price talk: | 5½% area
|
|
|
| Seven-year notes
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| Amount: | $690 million, increased from $500 million
|
| Maturity: | May 1, 2025
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| Coupon: | 7½%
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| Price: | Par
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| Yield: | 7½%
|
| Spread: | 463 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until May 1, 2021, then callable at 105.625
|
| Price talk: 7 ½% to 7 ¾%
|
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