Published on 8/4/2016 in the Prospect News High Yield Daily.
New Issue: Engility prices downsized $300 million eight-year notes at par to yield 8 7/8%
By Paul A. Harris
Portland, Ore., Aug. 4 – Engility Corp. priced a downsized $300 million issue of eight-year senior notes (Caa1/B-) at par to yield 8 7/8% on Thursday, according to a syndicate source.
The issue size was decreased from $380 million, with the proceeds shifted to the concurrent term loan.
The yield printed at the tight end of yield talk in the 9% area.
Morgan Stanley & Co. LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Securities LLC, Deutsche Bank Securities and J.P. Morgan Securities LLC were the joint bookrunners.
The Chantilly, Va.-based provider of integrated services for the U.S. government plans to use the proceeds to refinance debt.
Issuer: | Engility Corp.
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Amount: | $300 million, decreased from $380 million
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Maturity: | Sept. 1, 2024
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Securities: | Senior notes
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Bookrunners: | Morgan Stanley & Co. LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Securities LLC, Deutsche Bank Securities, J.P. Morgan Securities LLC
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Coupon: | 8 7/8%
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Price: | Par
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Yield: | 8 7/8%
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Spread: | 749 bps
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Call: | Make-whole call at Treasuries plus 50 bps until Sept. 1, 2019, then callable at 104.438
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Equity clawback: | 35% at 108.875 until Sept. 1, 2019
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Trade date: | Aug. 4
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Settlement date: | Aug. 12
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Ratings: | Moody's: Caa1
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| S&P: B-
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Distribution: | Rule 144A and Regulation S with registration rights
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Price talk: | 9% area
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Marketing: | Roadshow
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