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Shutterfly’s $785 million seven-year notes talked at revised 8½% coupon at 95-96; pricing Wednesday
By Paul A. Harris
Portland, Ore., Sept. 24 – Shutterfly Inc. sweetened price talk on its upsized $785 million offering of seven-year senior secured notes (B1/B) on Tuesday, market sources said.
The revision sets coupon talk at 8½%, with discount talk that has the deal coming at 95 to 96.
Earlier talk had the deal coming to yield 8¼% to 8½%.
Initial guidance was in the low-to-mid 7% area, a bond trader said.
The offer, which was upsized from $500 million, is set to price on Wednesday.
On Monday Shutterfly announced covenant changes tightening restrictions on payments, investments, debt incurrence and liens, an informed source said.
Citigroup Global Markets Inc. is the lead left bookrunner for the Rule 144A and Regulation S for life offering. Barclays, SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC, BMO Securities, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets LLC, Mizuho Securities USA Inc. and UBS Securities LLC are the joint bookrunners.
The notes become callable after three years at par plus 50% of the coupon.
Proceeds will be used to fund the buyout of Shutterfly and Snapfish LLC by Apollo Global Management LLC.
Prior to the buyout closing, the issuing entity will be Photo Holdings Merger Sub, Inc.
With the $285 million upsizing of the notes, an equivalent decrease was made in the term loan size, decreasing the loan size to $1 billion from $1,285,000,000, sources said.
Shutterfly is a retailer and manufacturing platform for personalized products and communications.
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