New Issue: IronGate sells $180 million 11% five-year secured notes to yield 11½%

By Paul A. Harris

Portland, Ore., June 14 - IronGate Energy Services, LLC priced a $180 million issue of non-rated 11% five-year senior secured notes at 98.132 to yield 11½% on Friday, according to market sources.

The yield printed on top of yield talk. The reoffer price came in line with discount talk of about 2 points.

Jefferies LLC was the placement agent.

Proceeds will be used to fund the leveraged buyout of Archer Rental Tubular Division from Archer Ltd. by Clearlake Capital Group.

IronGate is a provider of rental and tubular services to energy exploration and production operators.

Issuer:	IronGate Energy Services, LLC
Face amount:	$180 million
Proceeds:	$176.6 million
Maturity:	July 1, 2018
Securities:	Senior secured notes
Placement agent:	Jefferies LLC
Coupon:	11%
Price:	98.132
Yield:	11½%
First call:	Make-whole at Treasuries plus 50 bps until July 1, 2016, then callable at 105.5
Equity clawback:	35% at 111 until July 1, 2016
Change-of-control put:	101%
Trade date:	June 14
Settlement date:	June 27
Ratings:	Non-rated
Distribution:	Regulation D private placement, to be automatically exchanged into Rule 144A and Regulation S notes upon closing
Price talk:	11½% yield, including about 2 points OID
Marketing:	Roadshow

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.