Published on 12/5/2012 in the Prospect News High Yield Daily.
New Issue: Hamilton Sundstrand prices $650 million 7¾% eight-year notes at par
By Paul A. Harris
Portland, Ore., Dec. 5 - Hamilton Sundstrand Industrial priced a downsized $650 million issue of eight-year senior notes (Caa1/CCC+/) at par to yield 7¾% on Wednesday, according to a syndicate source.
The yield printed at the tight end of the 7¾% to 8% yield talk.
The deal was downsized from $775 million, as the company shifted $125 million to its term loan.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Goldman Sachs & Co. and UBS Securities LLC were the joint bookrunners.
Proceeds will be used to fund the leveraged buyout of the company by BC Partners and the Carlyle Group.
Hamilton Sundstrand is a Windsor Locks, Conn.-based manufacturer of highly engineered, mission-critical pumps and compressors for the industrial, infrastructure and energy markets.
| Issuer: | Silver II Borrower SCA and Silver II US Holdings, LLC (Hamilton Sundstrand Industrial)
|
| Amount: | $650 million, decreased from $775 million
|
| Maturity: | Dec. 15, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Goldman Sachs & Co., UBS Securities LLC
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 657 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2015, then callable at 105.813, 103.875, 101.938, par on and after Dec. 15, 2018
|
| Equity clawback: | 40% at 107.75 until Dec. 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 5
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| Settlement date: | Dec. 13
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| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Roadshow
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