Published on 4/30/2021 in the Prospect News High Yield Daily.
New Issue: Mavis Tire prices $720 million eight-year notes at par to yield 6½%
By Paul A. Harris
Portland, Ore., April 30 – Mavis Tire Express Services priced a $720 million issue of eight-year senior notes (Caa2/CCC) at par to yield 6½% on Friday, according to market sources.
The yield printed in the middle of yield talk in the 6½% area and at the tight end of the 6½% to 6¾% initial guidance.
Jefferies LLC was at the left of a syndicate of bookrunners that also included Apollo Global Securities LLC, BofA Securities Inc., KKR Capital Markets LLC and Stifel Nicolaus & Co. Inc.
Proceeds will be used to fund the leveraged buyout of Mavis Tire, a Millwood, N.Y.-based tire retailer and automotive aftermarket service provider, by an investor group led by BayPine LP, in partnership with TSG Consumer Partners LP.
Issuer: | Metis Merger Sub, LLC prior to merger, then Mavis Tire Express Services TopCo, LP
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Amount: | $720 million
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Maturity: | May 15, 2029
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Securities: | Senior notes
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Bookrunners: | Jefferies LLC, Apollo Global Securities LLC, BofA Securities Inc., KKR Capital Markets LLC and Stifel Nicolaus & Co. Inc.
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Coupon: | 6½%
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Price: | Par
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Yield: | 6½%
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First call: | Make-whole call at Treasuries plus 50 bps until May 15, 2024, then callable at 103.25
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Equity clawback: | 40% at 106.5 until May 15, 2024
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Qualified IPO: | All, but not less than all, outstanding notes at 106.5 on or after Nov. 15, 2021 and on or before May 15, 2024
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Trade date: | April 30
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Settlement date: | May 4
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Ratings: | Moody's: Caa2
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| S&P: CCC
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 6½% area
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Marketing: | Roadshow
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