By Paul A. Harris
Portland, Ore., Nov. 7 – Smyrna Ready Mix Concrete, LLC priced a $1.1 billion issue of eight-year senior secured notes (Ba3/BB-/BB-) at par to yield 8 7/8% on Tuesday, according to market sources.
The yield printed at the wide end of yield talk and early guidance, both of which had been set in the 8¾% area.
The deal played to $1.7 billion of demand, according to a trader.
Bookrunners were J.P. Morgan Securities LLC and BofA Securities Inc.
The Murfreesboro, Tenn.-based supplier of concrete and related products and services plans to use the proceeds to fund pending bolt-on acquisitions and to pay down term loan and asset-based lending debt.
| Issuer: | Smyrna Ready Mix Concrete, LLC
|
| Amount: | $1.1 billion
|
| Issue: | Senior secured notes
|
| Maturity: | Nov. 15, 2031
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| Bookrunners: | J.P. Morgan Securities LLC and BofA Securities Inc.
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 433 bps over Treasuries
|
| Make-whole call: | Treasuries plus 50 bps until Nov. 15, 2026
|
| First call: | Nov. 15, 2026 at 104.438
|
| Equity clawback: | For up to 40% at 108.875
|
| Trade date: | Nov. 7
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| Settlement date: | Nov. 20
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| Ratings: | Moody’s: Ba3
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| S&P: BB-
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| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% area
|
| Marketing: | Roadshow
|
| Cusip: | 83283WAE3
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