By Paul A. Harris
Portland, Ore., Feb. 19 - Modular Space Corp. priced an upsized $375 million issue of five-year senior secured second-lien notes (B3/B-/) at par to yield 10¼% on Wednesday, according to a syndicate source.
The deal was upsized from $365 million.
The yield printed at the tight end of the 10¼% to 10½% yield talk.
Initial guidance was in the 10½% area, according to a market source.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Robert W. Baird & Co. Inc. were the joint bookrunners.
The Berwyn, Pa.-based company, which sells and services modular space structures and storage containers, plans to use the proceeds to repay debt.
| Issuer: | Modular Space Corp.
|
| Amount: | $375 million, increased from $365 million
|
| Maturity: | Jan. 31, 2019
|
| Securities: | Senior secured notes
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Robert W. Baird & Co. Inc.
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield to worst: | 10¼%
|
| Spread: | 878 bps
|
| First call: | Jan. 31, 2016 at 105.125
|
| Trade date: | Feb. 19
|
| Settlement date: | Feb. 25
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10¼% to 10½%
|
| Marketing: | Roadshow
|
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