By Paul A. Harris
Portland, Ore., March 16 – Husky Injection Molding Systems Ltd. priced a downsized $650 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 7¾% on Friday, according to market sources.
The issue size was decreased from $750 million, with $100 million shifted to the concurrent term loan, increasing its size to $2.1 billion from $2 billion.
The yield printed at the wide end of the 7½% to 7¾% yield talk. That official talk widened from initial guidance of 7¼% to 7½%, as the deal was being marketed, sources say.
BofA Merrill Lynch was the left bookrunner. Deutsche Bank Securities Inc., Goldman Sachs & Co., Barclays and BMO Securities were the joint bookrunners.
Proceeds are being used to fund the leveraged buyout of the Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry by Platinum Equity from Berkshire Partners and Omers Private Equity.
| Issuers: | Titan Acquisition Ltd. and Titan Co-Borrower, LLC
|
| Amount: | $650 million, decreased from $750 million
|
| Maturity: | April 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., Barclays, BMO Securities
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 492 bps
|
| Call protection: | Three years
|
| Trade date: | March 16
|
| Settlement date: | March 28
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 7½% to 7¾%
|
| Marketing: | Roadshow
|
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