By Paul A. Harris
Portland, Ore., June 12 – Hillman Group Inc. priced an upsized $330 million issue of eight-year senior notes (Caa2/CCC+/) at par to yield 6 3/8% on Thursday according to a syndicate source.
The deal was upsized from 270 million as the concurrent term loan was downsized by the same amount, $60 million, decreasing its size to $550 million from $610 million.
The yield printed at the tight end of yield talk in the 6˝% area.
Morgan Stanley & Co. LLC and Barclays were the joint bookrunners.
Proceeds will be used to help fund the leveraged buyout of the company by CCMP Capital Advisors LLC from Oak Hill Capital Partners, as well as to repay bank debt and redeem Hillman’s 10 7/8% notes due 2018.
Cincinnati-based Hillman supplies fasteners, key duplication systems, engraved tags and related hardware items.
| Issuer: | HMAN Finance Sub Corp., to be merged with and into Hillman Group, Inc.
|
| Amount: | $330 million, increased from $270 million
|
| Maturity: | July 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Barclays
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co.
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 401 bps
|
| First call: | July 15, 2017 at 104.781
|
| Trade date: | June 12
|
| Settlement date: | June 30
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6˝% area
|
| Marketing: | Roadshow
|
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