Lowell sets price talk in £795 million two-part notes offering, accelerates timing

By Paul A. Harris

Portland, Ore., Oct. 14 – Lowell Group set price talk in its £795 million two-part offering of high-yield notes and accelerated the timing of the planned issuance, according to a market source.

The deal is comprised of £555 million of seven-year senior secured notes (B2/B+) talked to yield 8½% to 8¾%. Goldman Sachs International will bill and deliver for the secured tranche.

The offering also includes £240 million of eight-year senior unsecured notes (Caa1/B-) talked to yield 10¾% to 11¼%. Credit Suisse will bill and deliver for the unsecured tranche.

Books were scheduled to close late in the London session on Wednesday, which accelerates the timing, the source said.

When the deal was announced, timing had the roadshow continuing into Thursday.

Goldman Sachs, Credit Suisse, Citigroup, ING and JPMorgan are joint bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used to fund the leveraged buyout of the Leeds, England, debt collector by Permira, as well as to redeem Lowell’s 5 7/8% senior secured notes due 2019 and 10¾% senior secured notes due 2019, and for general corporate purposes.

The issuing entities will be Garfunkelux Holdco 3 SA, a special purpose vehicle, and Garfunkelux Holdco 2 SA, the parent company of Lowell.

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