Published on 12/17/2009 in the Prospect News High Yield Daily.
New Issue: GXS upsizes to $785 million, prices 9¾% 5.5-year notes at 97.948 to yield 10¼%
By Paul A. Harris
St. Louis, Dec. 17 - GXS Worldwide, Inc. priced an upsized $785 million issue of 9¾% 5.5-year notes (B2/B/) at 97.948 to yield 10¼% on Thursday, according to an informed source.
The yield printed on top of price talk.
Barclays Capital Inc., J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Wells Fargo Securities were joint bookrunners for the issue, which was upsized from $750 million.
Proceeds will be used to repay bank debt, as well as for general corporate purposes. Proceeds will also be used to fund the cash portion of the merger with Inovis and to refinance Inovis debt. Proceeds from the upsizing will be used to redeem holding company notes.
GXS is a Gaithersburg, Md.-based e-commerce and integration services company.
| Issuer: | GXS Worldwide, Inc.
|
| Face amount: | $785 million, increased from $750 million
|
| Proceeds: | $768,892,000 (approximate)
|
| Maturity: | June 15, 2015
|
| Securities: | Senior secured notes
|
| Bookrunners: | Barclays Capital Inc., J.P. Morgan Securities Inc., Citigroup Global Markets Inc., Wells Fargo Securities
|
| Coupon: | 9¾%
|
| Price: | 97.948
|
| Yield: | 10¼%
|
| Spread: | 799 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until June 15, 2012. Prior to June 15, 2012, 10% of original principal may be redeemed at 103 during any 12-month period. Callable on June 15, 2012 at 104.875, 102.438, par on and after June 15, 2014
|
| Special mandatory redemption: | $230 million to be deposited into escrow subject to the completion of the acquisition. If the closing does not occur, $230 million can be redeemed at the initial offering price plus a premium of 1%, plus accrued interest
|
| Equity clawback: | 35% at 109.75 until June 15, 2012
|
| Trade date: | Dec. 17
|
| Settlement date: | Dec. 23
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 10¼% area
|
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