Equiniti re-enters market with £440 million two-part deal; pricing expected Tuesday

By Paul A. Harris

Portland, Ore., June 4 - British financial services provider Equiniti is back in the high yield market with a £440 million two-part offering of 51/2-year notes (B3/B/) after a deal it priced in late May was prevented by regulators from settling, market sources said.

Price talk on both tranches marched higher when the United Kingdom's Financial Conduct Authority held up a regulatory approval that the issuer and its underwriters expected to be a mere formality, sources said.

A £250 million tranche of fixed-rate notes is now talked at 7¼%; the tranche priced at 6¾% on May 23.

Meanwhile a £190 million tranche of floating-rate notes is talked at Libor plus 575 basis points, versus its previous clearing level of 550 bps.

Pricing is expected Tuesday.

The issuing entity will be Equiniti Newco 2 plc. The issuer on the deal which failed to settle was Equiniti Bondco plc.

As before, joint bookrunner JPMorgan will bill and deliver. Lloyds TSB and Citigroup were also joint bookrunners.

Proceeds from the new Rule 144A and Regulation S deal, which is earmarked to repay bank debt as was the case with the previous deal, will be escrowed pending the regulatory approval.

The issuer is based in Lancing, England.

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