By Paul A. Harris
Portland, Ore., May 10 – Calderys Financing, LLC priced a $550 million issue of five-year senior secured notes (B2/B) at par to yield 11¼% on Wednesday, according to market sources.
The yield printed at the tight end of price talk in the 11 3/8% area. However, that talk came wide to early guidance in the high-10% to 11% area, according to a trader.
The deal also underwent covenant changes, which primarily bear upon how the company may disburse cash and incur additional debt.
Books built to $875 million, according to the trader, who had the new Calderys 11¼% notes sharply higher at 102 bid, 103 offered in late Wednesday trading.
BofA was the left bookrunner. Joint bookrunners were Santander, BMO, Goldman Sachs, JPMorgan, BNP Paribas, Deutsche Bank and Wells Fargo.
The Paris-based refractories supplier plans to use the proceeds plus cash on hand and a new ABL revolver to refinance debt and repay bridge capital and financing incurred in connection with the acquisitions and combination of the high temperature solutions business of Imerys SA, now doing business as Calderys, and HarbisonWalker International by Platinum Equity, announced in January 2023.
| Issuer: | Calderys Financing, LLC
|
| Amount: | $550 million
|
| Issue: | Senior secured notes
|
| Maturity: | June 1, 2028
|
| Left bookrunner: | BofA
|
| Joint bookrunners: | Santander, BMO, Goldman Sachs, JPMorgan, BNP Paribas, Deutsche Bank and Wells Fargo
|
| Coupon: | 11¼%
|
| Price: | Par
|
| Yield: | 11¼%
|
| Spread: | 785 bps
|
| First call: | June 1, 2025 at 105.625
|
| Trade date: | May 10
|
| Settlement date: | May 24
|
| Ratings: | Moody’s: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 11 3/8% area
|
| Marketing: | Roadshow
|
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