Published on 10/21/2009 in the Prospect News High Yield Daily.
New Issue: Holly prices $100 million tap of 9 7/8% notes due 2017 at 101.5 to yield 9.589%
By Paul A. Harris
St. Louis, Oct. 21 - Holly Corp. priced a $100 million add-on to its 9 7/8% senior unsecured notes due June 15, 2017 (B1/BB/) at 101.5 to yield 9.589% on Wednesday, according to an informed source.
The deal priced at the rich end of the 101 to 101.5 price talk.
UBS Securities LLC was the left bookrunner for the quick-to-market deal. Bank of America Merrill Lynch and Goldman Sachs & Co. were joint bookrunners.
Capital One Southcoast Inc., Comerica Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments Inc. were co-managers.
Proceeds will be used to fund the acquisition of the Sinclair Refinery and a portion of the purchase price for the related inventory and for general corporate purposes.
The original $200 million issue priced at 94.105 to yield 11% on June 5, 2009.
Holly is a Dallas-based independent energy refiner.
| Issuer: | Holly Corp.
|
| Face amount: | $100 million
|
| Proceeds: | $101.5 million
|
| Maturity: | June 15, 2017
|
| Security description: | Add-on to the 9 7/8% senior unsecured notes
|
| Left bookrunner: | UBS Securities LLC
|
| Joint bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co.
|
| Co-managers: | Capital One Southcoast, Inc., Comerica Securities, Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc.
|
| Coupon: | 9 7/8%
|
| Price: | 101.5
|
| Yield: | 9.589%
|
| Spread: | 612.6 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until June 15, 2013, then callable at 104.938, 102.469, par on and after June 15, 2015
|
| Equity clawback: | 35% at 109.875 until June 15, 2012
|
| Trade date: | Oct. 21
|
| Settlement date: | Oct. 26 with accrued interest
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 101 to 101.5
|
| Original issue: | $200 million issue priced at 94.105 to yield 11% on June 5, 2009
|
| Total issue size: | $300 million
|
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