Published on 11/8/2010 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Icahn prices $500 million add-ons due January 2016, January 2018
By Paul A. Harris
St. Louis, Nov. 8 - Icahn Enterprises LP and Icahn Enterprises Finance Corp. tapped two existing issues of split-rated senior notes (Ba3/BBB-), raising $517 million of proceeds on Monday, according to an informed source.
The $500 million face amount deal included a $200 million add-on to the 7¾% notes due 2016, which priced at 103.25 to yield 6.987%. The reoffer price came at the cheap end of the 103.25 to 103.5 price talk.
In addition Icahn priced a $300 million add-on to the 8% notes due 2018 at 103.5 to yield 7.36%. The 8% notes add-on also priced at the cheap end of the 103.5 to 103.75 price talk.
Jefferies & Co. ran the books for the quick-to-market deal.
Proceeds will be used for general corporate purposes.
The New York City-based holding company is primarily engaged in the investment management, automotive, metals, real estate and home fashion businesses.
| Issuers: | Icahn Enterprises LP and Icahn Enterprises Finance Corp.
|
| Face amount: | $500 million
|
| Proceeds: | $517 million
|
| Securities: | Add-ons to 7¾% senior notes due 2016 and 8% senior notes due 2018
|
| Bookrunner: | Jefferies & Co.
|
| Trade date: | Nov. 8
|
| Settlement date: | Nov. 16 (both add-ons settle with accrued interest)
|
| Change-of-control put: | 101%
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BBB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Quick to market
|
|
|
| Notes due 2016
|
| Face amount: | $200 million
|
| Proceeds: | $206.5 million
|
| Maturity: | Jan. 15, 2016
|
| Coupon: | 7¾%
|
| Price: | 103.25
|
| Yield: | 6.987%
|
| Spread: | 593 bps
|
| Call features: | Callable on Jan. 15, 2013 at 103.875, 101.938, par on and after Jan. 15, 2015
|
| Equity clawback: | 35% at 107.75 until Jan. 15, 2013
|
| Price talk: | 103.25 to 103.5
|
| Original issue: | $850 million priced at 99.411 to yield 7 7/8% on Jan. 12, 2010
|
| Total issue size: | $1.05 billion
|
|
|
| Notes due 2018
|
| Face amount: | $300 million
|
| Proceeds: | $310.5 million
|
| Maturity: | Jan. 15, 2018
|
| Coupon: | 8%
|
| Price: | 103.5
|
| Yield: | 7.36%
|
| Spread: | 560 bps
|
| Call features: | Callable on Jan. 15, 2014 at 104.0, 102.0, par on and after Jan. 15, 2016
|
| Equity clawback: | 35% at 108.0 until Jan. 15, 2013
|
| Price talk: | 103.5 to 103.75
|
| Original issue: | $1.15 billion priced at 99.275 to yield 8 1/8% on Jan. 12, 2010
|
| Total issue size: | $1.45 billion
|
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