Madison IAQ to start roadshow on Monday for $1.49 billion notes in secured, unsecured tranches

By Paul A. Harris

Portland, Ore., June 11 – Madison IAQ, LLC plans to start a roadshow on Monday for $1.485 billion of high-yield notes in two tranches, according to a syndicate source.

The deal includes $600 million of seven-year senior secured notes (B1/B) and $885 million of eight-year senior unsecured notes (Caa1/CCC+).

A global investor call is set to get underway at 11 a.m. ET on Monday.

The roadshow is scheduled to wrap up on Wednesday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Goldman Sachs & Co. LLC is the left bookrunner. Citigroup Global Markets Inc., CIBC World Markets Corp., Barclays, BofA Securities Inc., Capital One Securities Inc., HSBC Securities (USA) Inc., MUFG and Stifel Nicolaus & Co. Inc. are the joint bookrunners.

The notes in both tranches become callable after three years at par plus 50% of the respective coupons. The secured notes feature a special call provision which would allow the issuer to redeem 10% of those notes annually at 103 during the non-call period.

The Chicago-based provider of indoor air quality solutions plans to use the proceeds plus a $1.925 billion term loan and equity from Madison Industries to fund the acquisition of Nortek Air from Melrose Industries plc and refinance certain debt.

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