By Paul Deckelman
New York, Oct. 29 - Viking Acquisition Inc. and Global Autocare Inc. priced an upsized $275 million offering of eight-year senior notes (Caa1/CCC+) on Friday at par to yield 9¼%, high-yield syndicate sources said.
The deal came at the tight end of price talk envisioning a yield in the 9¼% to 9½% range.
The amount was increased from the original $250 million.
The Rule 144A offering was shopped around the market via bookrunners J.P. Morgan Securities LLC and RBC Capital Markets Corp., the sources said, with Natixis Bleichroeder LLC heard as a co-manager.
While the deal had first surfaced on junk participants' radar screens on Monday, it was nestled deep in the forward calendar and had not been expected to appear Friday - but then was quickly brought to the fore to take advantage of favorable market conditions.
Proceeds from the deal will help fund the acquisition of Clorox Co.'s auto care products business, Global AutoCare, by Avista Capital Partners, market sources said.
Global AutoCare is a manufacturer, marketer and distributor of automotive aftermarket appearance and performance auto-care products.
Viking acquisition is a unit of Avista Capital Partners, a New York-based private-equity company.
| Issuers: | Viking Acquisition Inc. and Global Autocare Inc,
|
| Amount: | $275 million, upsized from original $250 million
|
| Security type: | Senior notes
|
| Maturity | Nov. 1, 2018
|
| Bookrunners: | J.P. Morgan Securities LLC and RBC Capital Markets Corp.
|
| Co-manager: | NatixisBleichroeder LLC
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 706 bps over comparable Treasuries
|
| Call protection: | Make-whole call at Treasuries plus 50 bps for the first four years, then callable at 104.625, 102.313 and finally at par
|
| Equity clawback: | 35% for three years at 109.25
|
| Change of control: | 101 put option
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Trade date: | Oct. 29
|
| Settlement date: | Nov. 5
|
| Price talk: | 9¼% to 9½%
|
| Distribution; | Rule 144A
|
| Marketing: | Quick to market
|
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