By Paul A. Harris
Portland, Ore., Oct. 23 – Aspen Insurance priced a $500 million issue of Highlands Holdings Bond Issuer, Ltd. and Highlands Holdings Bond Co-Issuer, Inc. five-year senior secured PIK toggle notes (BB+/BB) at par with a cash yield of 7 5/8% on Friday, according to a syndicate source.
The notes have a 7 5/8% cash coupon, which steps up by 75 basis points, to 8 3/8% for PIK coupon payments.
The cash yield printed at the tight end of talk in the 7¾% area.
Jefferies International Ltd. and Goldman Sachs & Co. LLC were the joint global coordinators and joint bookrunners.
The Hamilton, Bermuda-based property and casualty insurance and reinsurance company plans to use the proceeds to provide additional capital to its operating group, to fund a distribution and to pay for the initial period’s interest expense.
| Issuers: | Highlands Holdings Bond Issuer, Ltd. and Highlands Holdings Bond Co-Issuer, Inc.
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| Amount: | $500 million
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| Maturity: | Oct. 15, 2025
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| Securities: | Senior secured PIK toggle notes
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| Bookrunners: | Jefferies International Ltd. and Goldman Sachs & Co. LLC
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| Co-manager: | Apollo Global Securities, LLC
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| Cash coupon: | 7 5/8%
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| PIK coupon: | 8 3/8%
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| Price: | Par
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| Cash yield: | 7 5/8%
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| First call: | Oct. 15, 2022 at 103.813
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| Trade date: | Oct. 23
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| Settlement date: | Oct. 28
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| Ratings: | S&P: BB+
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| Fitch: BB
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7¾% area cash coupon, 75 bps PIK step-up
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| Marketing: | Roadshow
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