By Paul A. Harris
Portland, Ore., Nov. 18 – Sally Beauty Holdings, Inc. priced a $750 million issue of 10-year senior notes (Ba2/BB+) at par to yield 5 5/8% on Wednesday, according to market sources.
The yield printed tight to the 5¾% yield talk. Initial yield guidance was in the high 5% range.
BofA Merrill Lynch was the left bookrunner. J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and RBC Capital Markets were the joint bookrunners.
The Denton, Texas-based company plans to use the proceeds, together with cash on hand and/or additional borrowings, to redeem all $750 million of its 6 7/8% senior notes due 2019.
The issuing entities will be Sally Holdings LLC and Sally Capital Inc., indirect wholly owned subsidiaries of Sally Beauty.
The company is a retailer and distributor of professional beauty supplies.
| Issuers: | Sally Holdings LLC and Sally Capital Inc.
|
| Amount: | $750 million
|
| Maturity: | Dec. 2, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Spread: | 336 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2020, then callable at a premium
|
| Trade date: | Nov. 18
|
| Settlement date: | Dec. 3
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 5¾%
|
| Marketing: | Quick to market
|
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