By Paul A. Harris
Portland, Ore., March 20 – Miter Brands priced an upsized $700 million issue of eight-year senior secured notes (B1/BB-) at par to yield 6¾% in a Wednesday drive-by, according to market sources.
The issue size increased from $500 million.
RBC Capital Markets LLC was the lead.
Demand for the paper was intense, sources say.
The deal was four-times oversubscribed before it was officially announced, a portfolio manager said.
Prior to upsizing, the order book was eight-times deal-size, a trader said.
The yield printed 12.5 basis points through official yield talk in the 7% area. Initial guidance was in the low-7% area.
Proceeds plus an upsized $1.654 billion term loan (from $1.3 billion), and an equity contribution from Koch Equity Development LLC, a current investor in Miter, will be used to fund the acquisition of PGT Innovations Inc. for $42 per share in cash, or an enterprise value of about $3.1 billion.
Incremental proceeds resulting from the bond and loan upsize will be used to repay term loan debt outstanding.
Miter is a manufacturer of precision-built windows and doors. PGT is a North Venice, Fla.-based designer and manufacturer of patio door and window solutions.
| Issuer: | Miter Brands
|
| Amount: | $700 million, increased from $500 million
|
| Issue: | Senior secured notes
|
| Maturity: | April 1, 2032
|
| Lead: | RBC Capital Markets LLC
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 249 bps
|
| Call protection: | Three years
|
| Trade date: | March 20
|
| Settlement date: | March 28
|
| Ratings: | Moody’s: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7% area
|
| Marketing: | Drive-by
|
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