By Paul A. Harris
St. Louis, Feb. 14 - Goodman Global Inc. made a $500 million private placement of 13½% eight-year senior subordinated notes on Wednesday, according to an informed source.
The non-rated notes were priced at par.
GSO Capital Partners LP and Farallon Capital Management, LLC took down the bulk of the issue, however there were distributions to other parties, according to the source.
The notes come with a 14% PIK coupon option, which allows the issuer to make a blended 11% cash and 3% in-kind coupon payment.
Barclays Capital was the placement agent. The notes were placed with registration rights.
Proceeds will be used to fund the $2.65 billion leveraged buyout of the company by Hellman & Friedman LLC.
Goodman Global is a Houston-based manufacturer of residential and light commercial heating, ventilation and air conditioning equipment.
| Issuer: | Goodman Global Inc.
|
| Amount: | $500 million
|
| Maturity: | Feb. 15, 2016
|
| Security description: | Senior subordinated notes
|
| Placement agent: | Barclays Capital
|
| Cash coupon: | 13½%
|
| PIK coupon: | 14% (11% cash and 3% PIK)
|
| Price: | Par
|
| Yield: | 13½%
|
| Call features: | Make-whole at Treasuries plus 50 bps until Feb. 15, 2011, then callable at 106.75, 104.50, 102.25, par on and after Feb. 15, 2014
|
| Equity clawback: | Until Feb. 15, 2011 for 40% at 113.50
|
| Trade date: | Feb. 13
|
| Settlement date: | Feb. 13
|
| Ratings: | Non-rated
|
| Distribution: | Private placement with registration rights
|
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