By Paul A. Harris
St. Louis, March 7 - Spyglass Merger Corp., which will be merged with and into Serena Software Inc., priced a downsized $200 million issue of 10-year senior subordinated notes (Caa1/CCC+) at par to yield 10 3/8% on Tuesday, according to an informed source.
The yield came in the middle of the 10¼% to 10½% price talk.
Merrill Lynch, Lehman Brothers and UBS Investment Bank were joint bookrunners for the issue, which was priced via Rule 144A with registration rights.
Proceeds will be used to help fund the acquisition of Serena by Silver Lake Partners for about $1.24 billion.
The offering was downsized from $225 million, with $25 million being shifted to the company's term loan.
Serena is a San Mateo, Calif., provider of software products for managing process and controlling change across the information technology environment.
| Issuer: | Spyglass Merger Corp. (to be merged with and into Serena Software Inc.)
|
| Amount: | $200 million (decreased from $225 million)
|
| Maturity: | March 15, 2016
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Merrill Lynch, Lehman Brothers, UBS Investment Bank
|
| Coupon: | 10 3/8%
|
| Price: | Par
|
| Yield: | 10 3/8%
|
| Spread: | 594 basis points
|
| Call features: | Callable after March 15, 2011 at 105.188, 103.458, 101.729, par on and after March 15, 2014
|
| Equity clawback: | Until March 15, 2009 for 35% at 110.375
|
| Trade date: | March 7
|
| Settlement date: | March 10
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 10¼%-10½%
|
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