By Paul A. Harris
St. Louis, Dec. 15 - Goodman Global Holdings Inc. sold $650 million of bonds in two tranches on Wednesday, according to a syndicate source.
The company sold $250 million of senior floating-rate notes due June 15, 2012 (B3/B-) at par to yield six-month Libor plus 300 basis points. Price talk was Libor plus 300 to 325 basis points.
In addition the company sold $400 million of eight-year senior subordinated notes (Caa1/B-) at par to yield 7 7/8%. Price talk was the 8% area.
UBS Investment Bank, JP Morgan and Credit Suisse First Boston ran the books for the Rule 144A/Regulation S issues. The co-managers were Deutsche Bank Securities and Merrill Lynch & Co.
Proceeds will be used to back the $1.43 billion acquisition of the company by Apollo Management LP.
Goodman Global Holdings is a Houston-based manufacturer of residential and light commercial heating and air conditioning products.
| Issuer: | Goodman Global Holdings Inc.
|
| Amount: | $650 million
|
| Bookrunners: | UBS Investment Bank, JP Morgan, Credit Suisse First Boston
|
| Co-managers: | Deutsche Bank Securities, Merrill Lynch & Co.
|
| Trade date: | Dec. 15
|
| Settlement date: | Dec. 23
|
|
|
| Floating-rate tranche
|
| Amount: | $250 million
|
| Maturity: | June 15, 2012
|
| Security description: | Senior floating-rate notes
|
| Coupon: | Six-month Libor plus 300 basis points
|
| Price: | Par
|
| Yield: | Six-month Libor plus 300 basis points
|
| Call protection: | 1.5 years
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | Libor plus 300-325 basis points
|
|
|
| Fixed-rate tranche
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| Amount: | $400 million
|
| Maturity: | Dec. 15, 2012
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| Security description: | Senior subordinated notes
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| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 400 basis points
|
| Call protection: | Four years
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 8% area
|
|
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