Published on 2/12/2020 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Husky III sells $460 million 13%/13¾% PIK toggle notes due 2025 at 98
By Paul A. Harris
Portland, Ore., Feb. 12 – Husky Injection Molding Systems Ltd. priced a $460 million issue of Husky III Holding Ltd. 13% five-year PIK toggle notes (Caa2/CCC) at 98 to yield 13.563% on Tuesday, according to a market source.
The coupon increases to 13¾% for PIK payments.
The deal came in line with final guidance. Earlier yield talk was 12¾% to 13%. Initial talk was in the 12% area.
In addition to pricing concessions, the deal underwent extensive covenant changes, the source said.
The Bolton, Ont.-based supplier of machinery for injection molding of plastics plans to use the proceeds to return capital to shareholders and pay certain fees.
| Issuer: | Husky III Holding Ltd.
|
| Amount: | $460 million
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| Maturity: | Feb. 15, 2025
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| Securities: | PIK toggle notes
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| Left bookrunner: | BofA Securities Inc
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| Joint bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., Barclays, BMO Securities, NBOC, TD Securities
|
| Cash coupon: | 13%
|
| PIK coupon: | 13¾%
|
| Price: | 98
|
| Yield: | 13.563%
|
| Spread: | 1,215 bps
|
| Call protection: | One year
|
| Trade date: | Feb. 11
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| Settlement date: | Feb. 14
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| Ratings: | Moody's: Caa2
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| S&P: CCC
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 13%/13¾% at 98, revised from 12¾% to 13%
|
| Marketing: | Roadshow
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