By Paul A. Harris
Portland, Ore., Feb. 12 – Sally Beauty Supply LLC priced a $600 issue of Sally Holdings LLC and Sally Capital Inc. eight-year senior notes (Ba2/BB-) at par to yield 6¾% in a Monday drive-by, according to market sources.
The yield printed at the tight end of the 6¾% to 6 7/8% yield talk. Initial guidance was in the low-7% area.
The deal was heard to have been in the market with $250 million of reverse inquiry, a trader said.
Bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC and Truist Securities Inc.
The Denton, Tex.-based specialty retailer plans to use the proceeds to redeem all its 5 5/8% senior notes due 2025 that remain outstanding.
| Issuers: | Sally Holdings LLC and Sally Capital Inc.
|
| Amount: | $600 million
|
| Issue: | Senior notes
|
| Maturity: | March 1, 2032
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC and Truist Securities Inc.
|
| Co-managers: | Citizens JMP Securities Inc., Regions Securities LLC and U.S. Bancorp Investments Inc.
|
| Trustee: | Computershare Trust Co., NA
|
| Counsel to issuer: | Alston & Bird LLP
|
| Counsel to underwriters: | Freshfields Bruckhaus Deringer US LLP
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 258 bps
|
| First call: | March 1, 2027 at 103.375
|
| Change-of-control put: | At 101
|
| Trade date: | Feb. 12
|
| Settlement date: | Feb. 27
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 6¾% to 6 7/8%
|
| Marketing: | Drive-by
|
| Cusip: | 79546VAQ9
|
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