By Paul A. Harris
Portland, Ore., May 12 – Club Car LLC priced an upsized $525 million issue of MajorDrive Holdings IV, LLC eight-year senior notes (Caa2/CCC+) at par to yield 6 3/8% on Wednesday, according to market sources.
The issue size increased from $450 million.
The yield printed in the middle of yield talk in the 6 3/8% area. Initial guidance was in the high 6% area.
The deal was playing to around $2 billion of orders on Wednesday morning, according to an investor.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc.
Proceeds plus an equity investment and new credit facilities will be used to fund Platinum Equity’s acquisition of Club Car.
Platinum Equity is acquiring the Augusta, Ga.-based manufacturer of golf carts and other low-speed vehicles from Ingersoll Rand in a transaction valued at $1.7 billion and expected to close in the third quarter.
| Issuer: | MajorDrive Holdings IV, LLC
|
| Amount: | $525 million, increased from $450 million
|
| Maturity: | June 1, 2029
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc.
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 489 bps
|
| First call: | June 1, 2024 at 103.188
|
| Equity clawback: | 40% at 106.375 until June 1, 2024
|
| Trade date: | May 12
|
| Settlement date: | June 1
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Registration S for life
|
| Marketing: | Roadshow
|
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