By Paul A. Harris
Portland, Ore., Sept. 19 - AOT Bedding Super Holdings priced a downsized $650 million issue of eight-year senior notes (Caa1/CCC+/) at par to yield 8 1/8% on Wednesday, according to a market source.
The yield printed at the tight end of price talk that was set in the 8¼% area.
The notes issue was downsized from $725 million, with $75 million of proceeds shifted to a term loan.
Goldman Sachs & Co., Morgan Stanley & Co. LLC, UBS Securities Inc., Deutsche Bank Securities Inc. and Barclays were the joint bookrunners.
Proceeds will be used to help fund the acquisition of the company by Advent International.
AOT is the parent company of Hoffman Estates, Ill.-based National Bedding Co. and Atlanta-based Simmons Bedding Co.
| Issuer: | AOT Bedding Super Holdings
|
| Amount: | $650 million, decreased from $725 million
|
| Maturity: | Oct. 1, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC, UBS Securities Inc., Deutsche Bank Securities Inc., Barclays
|
| Co-managers: | Jefferies & Co., RBC Capital Markets
|
| Coupon: | 8 1/8%
|
| Price: | Par
|
| Yield: | 8 1/8%
|
| Spread: | 672 bps
|
| First call: | Oct. 1, 2015 at 106.094
|
| Trade date: | Sept. 19
|
| Settlement date: | Oct. 1
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 8¼% area
|
| Marketing: | Roadshow
|
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