Published on 10/7/2015 in the Prospect News Private Placement Daily.
New Issue: Stericycle places notes totaling $300 million to fund acquisition
By Lisa Kerner
Charlotte, N.C., Oct. 7 – Stericycle, Inc. issued and sold $150 million of six-year 2.89% senior notes and $150 million of eight-year 3.18% senior notes to 25 institutional investors on Oct. 1.
The company will use the proceeds to fund a portion of its $2.3 billion acquisition of Shred-it International ULC, according to an 8-K filing with the Securities and Exchange Commission.
The notes have a make-whole call at Treasuries plus 50 basis points.
Under the note purchase agreement, Stericycle must maintain a maximum consolidated leverage ratio of 4 to 1 and later 3.75 to 1, for specified time periods.
Purchasers include Metropolitan Life Insurance Co., General American Life Insurance Co., MetLife Insurance Co. USA, Erie Family Life Insurance Co., Northwestern Mutual Life Insurance Co., Northwestern Mutual Life Insurance Co. for its Group Annuity Separate Account, New York Life Insurance Co., New York Life Insurance and Annuity Corp., New York Life Insurance and Annuity Corp. Institutionally Owned Life Insurance Separate Account (BOLI 3), Bank of New York Mellon, State Farm Life Insurance Co., State Farm Life and Accident Assurance Co., Nationwide Life Insurance Co., Thrivent Financial for Lutherans, Principal Life Insurance Co., State of Wisconsin Investment Board, Auto-Owners Insurance Co., Auto-Owners Life Insurance Co., American United Life Insurance Co., State Life Insurance Co., Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York, PHL Variable Insurance Co., Woodmen of the World Life Insurance Society, Horizon Blue Cross Blue Shield of New Jersey and Southern Farm Bureau Life Insurance Co.
Stericycle provides medical waste collection, transportation, treatment and disposal services and safety and compliance programs. The company is based in Lake Forest, Ill.
| Issuer: | Stericycle, Inc.
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| Issue: | Senior notes
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| Amount: | $300 million
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| Price: | Par
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| Call option: | Make-whole call at Treasuries plus 50 bps
|
| Settlement: | Oct. 1
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| Purchasers: | Metropolitan Life Insurance Co., General American Life Insurance Co., MetLife Insurance Co. USA, Erie Family Life Insurance Co., Northwestern Mutual Life Insurance Co., Northwestern Mutual Life Insurance Co. for its Group Annuity Separate Account, New York Life Insurance Co., New York Life Insurance and Annuity Corp., New York Life Insurance and Annuity Corp. Institutionally Owned Life Insurance Separate Account (BOLI 3), Bank of New York Mellon, State Farm Life Insurance Co., State Farm Life and Accident Assurance Co., Nationwide Life Insurance Co., Thrivent Financial for Lutherans, Principal Life Insurance Co., State of Wisconsin Investment Board, Auto-Owners Insurance Co., Auto-Owners Life Insurance Co., American United Life Insurance Co., State Life Insurance Co., Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York, PHL Variable Insurance Co., Woodmen of the World Life Insurance Society, Horizon Blue Cross Blue Shield of New Jersey and Southern Farm Bureau Life Insurance Co.
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| Distribution: | Private placement
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|
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| Six-year notes
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| Amount: | $150 million
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| Coupon: | 2.89%
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| Maturity: | Oct. 1, 2021
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| Yield: | 2.89%
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|
|
| Eight-year notes
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| Amount: | $150 million
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| Coupon: | 3.18%
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| Maturity: | Oct. 1, 2023
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| Yield: | 3.18%
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