By Paul A. Harris
Portland, Ore., May 16 - Matalan Finance plc priced £492 million of secured notes in two tranches on Friday, according to a market source.
The deal included a £342 million tranche of five-year first-lien notes (B2/B-/), which priced at par to yield 6 7/8%, at the tight end of yield talk that was set in the 7% area. Initial guidance had the first-lien notes pricing in the low-7% context.
In addition Matalan priced a £150 million trance of six-year second-lien notes (Caa2/CCC/) at par to yield 8 7/8%, also at the tight end of yield talk in the 9% area. Earlier guidance had the second-lien notes pricing in the low 9% context.
Joint global coordinator and joint physical bookrunner Morgan Stanley will bill and deliver. Lloyds was also a joint global coordinator and joint physical bookrunner. Barclays was a bookrunner.
The Skelmersdale, England-based clothing and housewares retailer plans to use the proceeds to repay debt.
| Issuer: | Matalan Finance plc
|
| Amount: | £492 million
|
| Securities: | Secured notes
|
| Joint global coordinators: | Morgan Stanley (bill and deliver), Lloyds
|
| Bookrunner: | Barclays
|
| Trade date: | May 16
|
| Settlement date: | June 2
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| First-lien notes
|
| Amount: | £342 million
|
| Maturity: | June 1, 2019
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| First call: | June 1, 2016 at 103.438
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Price talk: | 7% area
|
|
|
| Second-lien notes
|
| Amount: | £150 million
|
| Maturity: | June 1, 2020
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| First call: | June 1, 2017 at 104.438
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC
|
| Price talk: | 9% area
|
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