Published on 11/14/2013 in the Prospect News High Yield Daily.
New Issue: Ellucian prices upsized $400 million 9 5/8%/10 3/8% PIK toggle notes at 99 to yield 9.88%
By Paul A. Harris
Portland, Ore., Nov. 14 - Ellucian, Inc. priced an upsized $400 million issue of five-year senior PIK toggle notes (Caa2/CCC+) at 99 to yield 9.88% on Thursday, according to a buyside source.
The notes pay a cash coupon of 9 5/8%, which steps up by 75 basis points to 10 3/8% in the event of a PIK coupon payment.
The deal was increased from an original size of $350 million.
The yield came in the middle of the 9¾% to 10% yield talk.
JP Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and Deutsche Bank Securities Inc. were the joint bookrunners for the quick-to-market transaction.
The Fairfax, Va.-based provider of software and services to the education community plans to use the proceeds to fund a dividend to its shareholders.
Issuer: | Sophia Holding Finance, L.P. and Sophia Holding Finance, Inc. (Ellucian, Inc.)
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Face amount: | $400 million, increased from $350 million
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Proceeds: | $396 million
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Maturity: | Dec. 1, 2018
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Securities: | Senior PIK toggle notes
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Bookrunners: | JP Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp., Deutsche Bank Securities Inc.
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Cash coupon: | 9 5/8%
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PIK coupon: | 10 3/8%
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Price: | 99
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Yield: | 9.88%
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Spread: | 855 bps
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Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2014, then callable at 102, 101, par on and after Dec. 1, 2016
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Equity clawback: | For 40% at 109.625 until Dec. 1, 2014
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Trade date: | Nov. 14
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Settlement date: | Nov. 19
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Ratings: | Moody's: Caa2
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| Standard & Poor's: CCC+
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 9¾% to 10%
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Marketing: | Quick to market
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