By Paul A. Harris
Portland, Ore., Jan. 18 – Matalan Retail Ltd. priced £480 million of secured notes in two re-sized tranches on Thursday, a market source said.
The deal saw £20 million of proceeds shifted to the first-lien tranche from the second-lien tranche.
An upsized £350 million amount of five-year first-lien notes (B2/B-) priced at par to yield 6¾%. The tranche size was increased from £330 million. The yield printed tighter than guidance in the 7% area.
The deal also included a downsized £130 million amount of six-year second-lien notes (Caa2/CCC), which priced at par to yield 9½%. The tranche size was decreased from £150 million. The yield printed inside of guidance in the 9 7/8% area.
Barclays, Lloyds and Morgan Stanley managed the sale.
The Preston, England-based fashion and homeware retailer plans to use the proceeds to refinance its existing secured notes.
| Issuer: | Matalan Retail Ltd.
|
| Amount: | £480 million
|
| Securities: | Secured notes
|
| Managers: | Barclays, Lloyds, Morgan Stanley
|
| Trade date: | Jan. 18
|
| Marketing: | Roadshow
|
|
|
| First-lien notes
|
| Amount: | £350 million, increased from £330 million
|
| Maturity: | Jan. 31, 2023
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Call protection: | Three years
|
| Ratings: | Moody’s: B2
|
| S&P: B-
|
| Price talk: | 7% area
|
|
|
| Second-lien notes
|
| Amount: | £130 million, decreased from £150 million
|
| Maturity: | Jan. 31, 2024
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Call protection: | Three years
|
| Ratings: | Moody’s: Caa2
|
| S&P: CCC
|
| Price talk: | 9 7/8% area
|
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