By Abigail W. Adams
Portland, Me., May 18 – Capstone Borrower Inc. priced a downsized $400 million offering of seven-year senior secured notes (B2/B-/BB) on Thursday at par to yield 8% to finance Blackstone’s acquisition of Cvent Holding Corp., according to a market source.
The initial size of the offering was $500 million; however, $100 million of proceeds were shifted to a concurrent term loan.
Initial price talk was for a yield in the 8% area. Early guidance was for a yield in the low 8% area.
The notes are non-callable until June 15, 2026.
There is a 40% equity clawback at 108 during the no-call period.
The notes carry a 101 poison put.
Morgan Stanley & Co. LLC, UBS Securities LLC, Citizens Capital Markets Inc. and Fifth Third Securities Inc. are bookrunners for the Rule 144A and Regulation S offering.
Proceeds will be used to finance the acquisition of Cvent by private equity funds managed by Blackstone and refinance existing credit facilities.
Cvent is a Tysons, Va.-based event management and hospitality software company.
| Issuer: | Capstone Borrower Inc.
|
| Amount: | $400 million
|
| Issue: | Senior secured notes
|
| Maturity: | June 15, 2030
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, UBS Securities LLC, Citizens Capital Markets Inc. and Fifth Third Securities Inc.
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 438 bps
|
| First call: | June 15, 2026 at 104
|
| Equity clawback: | 40% at 108 until June 15, 2026
|
| Change-of-control: | 101
|
| Trade date: | May 18
|
| Settlement date: | June 2
|
| Ratings: | Moody’s: B2
|
| S&P: B-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 8% area
|
| Marketing: | Roadshow
|
|
|
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