By Paul A. Harris
Portland, Ore., May 7 - Safway Group Holdings LLC priced an upsized $560 million issue of five-year senior secured second-lien notes (B3/B/) at par to yield 7% on Tuesday, according to a market source.
The deal was upsized from $540 million.
The yield printed 12.5 basis points inside of yield talk set in the 7¼% area.
Goldman Sachs & Co., Wells Fargo Securities LLC, Morgan Stanley & Co. LLC, Barclays and Lazard Capital Markets LLC managed the sale.
Proceeds will be used to repay the company's second-lien senior secured term loan in full and a portion of the ABL credit facility, as well as to make a distribution to the parent to enable the parent to pay a dividend to its equity holders. Proceeds will also be used for general corporate purposes.
Safway is a Waukesha, Wis.-based provider of scaffolding and access solutions for commercial construction and industrial and infrastructure applications.
| Issuer: | Safway Group Holdings LLC
|
| Amount: | $560 million, increased from $540 million
|
| Maturity: | May 15, 2018
|
| Securities: | Senior secured second-lien notes
|
| Managers: | Goldman Sachs & Co., Wells Fargo Securities LLC, Morgan Stanley & Co. LLC, Barclays, Lazard Capital Markets LLC
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 625 bps
|
| Call protection: | Two years
|
| Trade date: | May 7
|
| Settlement date: | May 14
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7¼% area
|
| Marketing: | Roadshow
|
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