Published on 5/3/2007 in the Prospect News High Yield Daily.
New Issue: Swift Transportation prices $835 million notes in two tranches
By Paul A. Harris
St. Louis, May 3 - Saint Acquisition Corp., which will be merged with and into Swift Transportation Co., Inc., priced $835 million of second-priority senior secured notes (B-) in two tranches on Wednesday, according to a market source.
The Phoenix-based freight company priced a $240 million tranche of eight-year floating-rate notes at Libor plus 775 basis points, on top of price talk that had been increased from earlier talk of Libor plus 650 bps.
Meanwhile the company priced a $595 million tranche of 10-year fixed-rate notes at par to yield 12½%, on top of price talk that had been increased from earlier talk in the 11½% area.
Morgan Stanley was the left bookrunner for the Rule 144A for life and Regulation S issue of notes. Wachovia Securities and JP Morgan were joint bookrunners. ABN Amro was the co-manager.
Proceeds will be used to fund a portion of the acquisition of the company by Saint Corp., an entity created by Swift's founder and largest shareholder, Jerry Moyes, a current director and former chairman and chief executive officer.
| Issuer: | Saint Acquisition Corp. (to be merged with and into Swift Transportation Co. Inc.)
|
| Amount: | $835 million
|
| Security description: | Second-priority senior secured notes
|
| Left bookrunner: | Morgan Stanley
|
| Joint bookrunners: | Wachovia Securities, JP Morgan
|
| Co-manager: | ABN Amro
|
| Trade date: | May 3
|
| Settlement date: | May 10
|
| Rating: | Standard & Poor's: B-
|
| Distribution: | Rule 144A for life and Regulation S
|
|
|
| Floating-rate notes
|
| Amount: | $240 million
|
| Maturity: | May 15, 2015
|
| Coupon: | Libor plus 775 bps
|
| Price: | Par
|
| Yield: | Libor plus 775 bps
|
| Call protection: | Callable on May 15, 2009 at 102, 101, par on and after May 15, 2011
|
| Equity clawback: | Until May 15, 2010 for 35% at par plus applicable coupon
|
| Price talk: | Libor plus 775 bps (increased from Libor plus 650 bps)
|
|
|
| Fixed-rate tranche
|
| Amount: | $595 million
|
| Maturity: | May 15, 2017
|
| Coupon: | 12½%
|
| Price: | Par
|
| Yield: | 12½%
|
| Spread: | 783 bps
|
| Call protection: | Callable on May 15, 2012 at 106.25, 104.167, 102.083, par on and after May 15, 2015
|
| Equity clawback: | Until May 15, 2010 for 35% at 112.50
|
| Price talk: | 12½% (increased from 11½% area)
|
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