Published on 3/22/2012 in the Prospect News High Yield Daily.
New Issue: Alliance Data sells upsized $500 million eight-year notes at par to yield 6 3/8%
By Paul A. Harris
Portland, Ore., March 22 - Alliance Data Systems Corp. priced an upsized $500 million issue of unrated eight-year senior notes at par to yield 6 3/8% on Thursday, according to a syndicate source.
The yield printed at the tight end of price talk set in the 6½% area.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays Capital Inc., RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners for the issue, which was upsized from $350 million.
Proceeds will be used to repay outstanding revolver debt and for general corporate purposes.
The issuer is a Dallas-based provider of transaction-based, data-driven marketing and loyalty solutions serving large, consumer-based industries.
| Issuer: | Alliance Data Systems Corp.
|
| Amount: | $500 million, increased from $350 million
|
| Maturity: | April 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays Capital Inc., RBC Capital Markets, Wells Fargo Securities LLC (joint)
|
| Senior co-managers: | SMBC, Credit Suisse Securities (USA) LLC, Fifth Third Securities
|
| Co-managers: | CIBC World Markets, Huntington, Mizuho, Williams, KeyBanc Capital Markets, Scotia Capital, RBS Securities Inc., SunTrust Robinson Humphrey (co's)
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 450 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until April 1, 2016, then callable at a premium
|
| Equity clawback: | 35% at 106.375 until April 1, 2015
|
| Trade date: | March 22
|
| Settlement date: | March 29
|
| Ratings: | Unrated
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% area
|
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