By Paul A. Harris
Portland, Ore., Nov. 15 - Alliance Data Systems Corp. priced a restructured and non-rated $400 million issue of non-callable 5¼% five-year senior notes at 98.912 to yield 5½% on Thursday, according to a market source.
The maturity was decreased to five years from six years.
The yield printed at the wide end of the 5¼% to 5½% yield talk.
Timing was moved back. The deal was announced on Wednesday morning as a same-day drive-by, only to be subsequently pushed into the Thursday market session.
J.P. Morgan Securities LLC, Bank of America Merrill Lynch, RBC Capital Markets LLC and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to fund the pending acquisition of Hyper Marketing Inc. and for general corporate purposes.
Alliance Data Systems is a Dallas-based provider of marketing and loyalty services.
| Issuer: | Alliance Data Systems Corp.
|
| Face amount: | $400 million
|
| Proceeds: | $395.65 million
|
| Maturity: | Dec. 1, 2017 (decreased to five years from six years)
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Bank of America Merrill Lynch, RBC Capital Markets LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | Credit Suisse Securities (USA) LLC, Fifth Third Securities Inc., SMBC Nikko Capital Markets Ltd., SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Barclays, Raymond James & Associates Inc., RBS Securities Inc., Scotia Capital (USA) Inc.
|
| Coupon: | 5¼%
|
| Price: | 98.912
|
| Yield: | 5½%
|
| Spread: | 488 bps
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Equity clawback: | 35% at 105.25 until Dec. 1, 2015
|
| Trade date: | Nov. 15
|
| Settlement date: | Nov. 20
|
| Ratings: | Non-rated
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¼% to 5½%
|
| Marketing: | Quick to market
|
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