Published on 10/13/2010 in the Prospect News High Yield Daily.
New Issue: Manitowoc prices upsized $600 million 10-year notes to yield 8 5/8%
By Paul Deckelman
New York, Oct. 13 - Manitowoc Co., Inc. came to market on Wednesday with a quickly shopped, upsized $600 million offering of 10-year senior notes (B3/B+), high yield syndicate sources said.
The 8½% bonds priced at 99.165 to yield 8 5/8%, which a source said was inside of price talk in a range of 8¾% to 9%
The offering was increased from the originally announced $500 million.
Deutsche Bank Securities, Inc, J.P. Morgan Securities LLC and Bank of America Merrill Lynch were joint bookrunners.
Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Morgan Stanley & Co. Inc. and Natixis Bleichroeder LLC served as co-lead managers.
A number of other banks also participated in the offering as co-managers - BNP Paribas Securities Corp., Scotia Capital (USA) Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Rabo Securities USA, Inc., Societe Generale and Mizuho Securities USA Inc.
The notes, sold under an offering registered with the Securities and Exchange Commission, will have call protection for the first five years, the sources said.
Manitowoc - a producer of industrial machinery based in Manitowoc, Wis. - plans to use the net proceeds from the offering to repay outstanding term loan borrowings.
| Issuer: | The Manitowoc Co., Inc.
|
| Amount: | $600 million (upsized from original $500 million)
|
| Maturity: | Nov. 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities, Inc, J.P. Morgan Securities LLC and Bank of America Merrill Lynch
|
| Co-lead managers: | Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Morgan Stanley & Co. Inc. and Natixis Bleichroeder LLC
|
| Co-managers: | BNP Paribas Securities Corp., Scotia Capital (USA) Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Rabo Securities USA, Inc., Societe Generale and Mizuho Securities USA Inc.
|
| Coupon: | 8½%
|
| Price: | 99.165
|
| Yield: | 8 5/8%
|
| Spread: | 620 bps
|
| Call features: | Non-callable until Nov. 1, 2015, then callable at 104.25; callable on or after Nov. 1, 2016 at 102.833; callable on or after Nov. 1, 2017 at 101.417, and callable on or after Nov. 1, 2018 at par.
|
| Equity clawback: | For 35% of issue at 108.5 until Nov. 1, 2013
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| Trade date: | Oct. 13
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| Settlement date: | Oct. 18 (T+3)
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| Expected Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Distribution: | SEC registered offering
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| Price talk: | 8¾% to 9%
|
| Marketing: | Quick to market
|
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