Published on 1/31/2024 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Husky Injection prices downsized $1 billion five-year secured notes at par to yield 9%
By Paul A. Harris
Portland, Ore., Jan. 31 – Husky Injection Molding Systems Ltd. and Titan Co Borrower, LLC priced a $1 billion issue of five-year senior secured notes (B3/B-) at par to yield 9% on Wednesday, according to a syndicate source.
The yield printed 25 basis points beneath the low end of the 9¼% to 9½% yield talk.
The issue size decreased from $1.3 billion with the shift of $300 million of proceeds to a concurrent term loan.
Proceeds from the notes, loan and preferred equity will be used to redeem all outstanding senior notes due 2026 and all outstanding senior PIK notes due 2025 and to repay credit facilities.
The issuer is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.
| Ultimate issuers: | Husky Injection Molding Systems Ltd. and Titan Co-Borrower, LLC
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| Initial issuers: | Husky IMS Canadian Escrow Co-Issuer Ltd. and Husky IMS U.S. Escrow Co-Issuer, LLC
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| Amount: | $1 billion
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| Issue: | Senior secured notes
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| Maturity: | Feb. 15, 2029
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| Bookrunners: | BofA Securities, Deutsche Bank, Barclays, BMO, Goldman Sachs, NBC and TD
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| Coupon: | 9%
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| Price: | Par
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| Yield: | 9%
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| Spread: | 508 bps
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| First call: | Feb. 15, 2026 at 104.5
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| Trade date: | Jan. 31
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| Settlement date: | Feb. 12
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| Ratings: | Moody’s: B3
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 9¼% to 9½%
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| Marketing: | Roadshow
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