Domestic & General sets talk for £500 million three-part notes offer

By Paul A. Harris

Portland, Ore., Oct. 23 - Domestic & General Group Ltd. set price talk for its £500 million three-part notes offering, an informed source said on Wednesday.

A £200 million tranche of seven-year senior secured fixed-rate notes (B2), which becomes callable in three years at par plus 50% of the coupon, is talked to price with a yield in the 6½% area.

A £150 million tranche of six-year senior secured floating-rate notes (B2), which becomes callable in one year, is talked to price at 99.5 with a Libor spread of 500 basis points to 525 bps.

And a £150 million tranche of eight-year senior unsecured notes (B3), which becomes callable in three years at par plus 50% of the coupon, is talked to price with a yield in the 8% area.

The deal is set to price on Thursday.

Joint global coordinator Goldman Sachs International will bill and deliver for the Rule 144A and Regulation S offer. Barclays and Credit Suisse are also joint global coordinators.

BNP Paribas, Morgan Stanley, SG CIB and UBS are the joint bookrunners.

Mizuho and Royal Bank of Scotland are the co-managers.

Proceeds, together with an equity contribution and cash held by the Domestic & General Group, will be used to finance the acquisition of Domestic & General Group Holdings Ltd. by CVC Capital Partners Ltd. from Advent International Corp. and to repay debt.

Domestic & General is a Bedworth, England-based home-appliance warranty provider.

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