By Paul A. Harris
St. Louis, Aug. 9 - CEVA Group, plc returned to the high-yield market on Thursday to price a $400 million issue of 10% seven-year senior second-lien notes at 95.17 to yield 11%, according to an informed source.
The notes, which had been withdrawn from the market on Aug. 2, were priced on top of the price talk. During the marketing that took place before the Aug. 2 postponement, however, they had been talked at the 10% area.
Credit Suisse, Bear Stearns, Goldman Sachs & Co., JP Morgan, Morgan Stanley and UBS Investment Bank were joint bookrunners for the Rule 144A and Regulation S for life issue. The co-manager was ABN Amro.
In late July the company slashed the bond deal by $1 billion equivalent, replacing the bonds with bridge financing, and withdrawing proposed euro-denominated tranches.
The company, which came to the debt markets for financing to help fund its acquisition of Houston-based logistics and supply chain management company EGL Inc., meanwhile restructured the remaining $400 million tranche by adding second-lien security to the notes.
Hoofddorp, Netherlands-based CEVA Group is an Apollo Management portfolio company.
| Issuer: | CEVA Group plc
|
| Face amount: | $400 million
|
| Proceeds: | $380.68 million
|
| Maturity: | Sept. 1, 2014
|
| Security description: | Senior second-lien notes
|
| Bookrunners: | Credit Suisse, Bear Stearns, Goldman Sachs & Co., JP Morgan, Morgan Stanley, UBS Investment Bank
|
| Co-manager: | ABN Amro
|
| Coupon: | 10%
|
| Price: | 95.17
|
| Yield: | 11%
|
| Spread: | 629 bps
|
| Call protection: | Three years
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 13
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S for life
|
| Price talk: | 10% coupon at a discount to yield 11% (previously talked at 10% area)
|
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