By Paul Deckelman
New York, April 8 - Synagro Technologies Inc. was heard by syndicate sources Monday to have sold $150 million of seven-year senior subordinated notes in the Rule 144A market via joint bookrunning managers Lehman Brothers and Banc of America Securities.
The notes priced at par to yield 9½%, at the tight end of pre-deal market price talk suggesting a yield in the 9½% to 9¾% range.
The Houston-based wastewater residuals management company plans to use the deal proceeds to repay bank debt and $53 million of its 12% subordinated debt.
Full terms are as folllows:
| Issuer: | Synagro Technologies Inc.
|
| Amount: | $150 million
|
| Notes: | Senior subordinated notes
|
| Maturity: | April 1, 2009
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 443 basis points over 5½% Treasury note due May 2009
|
| Call: | From April 1, 2006 at 104.75, at 102.375 in 2007 and at par in 2008
|
| Equity claw: | Until April 1, 2005 for 35% at 109.5
|
| Bookrunners: | Lehman Brothers and Banc of America Securities
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Rule 144 A CUSIP: | 87157EAA5
|
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