Published on 7/24/2014 in the Prospect News High Yield Daily.
New Issue: Alliance Data Systems sells upsized $600 million 5 3/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., July 24 – Alliance Data Systems Corp. priced an upsized $600 million issue of non-rated eight-year senior notes at par to yield 5 3/8% on Thursday, according to a syndicate source.
The deal was upsized from $500 million.
The yield printed in the middle of the 5¼% to 5½% yield talk.
Wells Fargo Securities LLC was the left bookrunner. BofA Merrill Lynch, J.P. Morgan Securities LLC, RBC Capital Markets LLC, Fifth Third Securities Inc. and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
The Plano, Texas-based provider of direct marketing services plans to use the proceeds, including those additional proceeds resulting from the $100 million upsizing of the deal, to pay down its revolver.
| Issuer: | Alliance Data Systems Corp.
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | Aug. 1, 2022
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, RBC Capital Markets LLC, Fifth Third Securities Inc., SunTrust Robinson Humphrey Inc.
|
| Senior co-managers: | BNP Paribas Securities Corp., CIBC World Markets Corp., Deutsche Bank Securities Inc., MUFG, Mizuho Securities USA Inc., Regions Securities LLC, Scotia Capital
|
| Co-managers: | Barclays, KeyBanc Capital Markets Inc., Raymond James & Associates Inc., U.S. Bancorp Investments Inc., Williams Capital Group LP
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 308 bps
|
| First call: | Aug. 1, 2017 at 104.031
|
| Trade date: | July 24
|
| Settlement date: | July 29
|
| Rating: | Non-rated
|
| Price talk: | 5¼% to 5½%
|
| Marketing: | Quick to market
|
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