Published on 11/20/2013 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Tervita prices upsized $335 million 10 7/8% notes due 2018 at 96.684 to yield 11 7/8%
By Paul A. Harris
Portland, Ore., Nov. 20 - Tervita Corp. launched and priced an upsized $335 million issue of 10 7/8% senior notes (Caa2/CCC/) due Feb. 15, 2018 at 96.684 to yield 11 7/8% on Wednesday, according to a syndicate source.
The deal was upsized from $325 million.
The yield printed at the tight end of yield talk set in the 12% area. The reoffer price came toward the rich end of the 4 to 5 points of discount talk.
RBC Capital Markets was the left bookrunner. Deutsche Bank Securities Inc., Goldman Sachs & Co. and TD Securities are the joint bookrunners.
The Calgary, Alta.-based environmental management services provider for the oil and gas industry plans to use the proceeds to fund a tender for the company's 11% senior notes due 2015. The additional proceeds resulting from the $10 million upsizing of the issue will be used to fund the original issue discount.
| Issuer: | Tervita Corp.
|
| Amount: | $335 million, increased from $325 million
|
| Maturity: | Feb. 15, 2018
|
| Securities: | Senior notes
|
| Left bookrunner: | RBC Capital Markets LLC
|
| Joint bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., TD Securities (USA) LLC
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC
|
| Coupon: | 10 7/8%
|
| Price: | 96.684
|
| Yield: | 11 7/8%
|
| Spread: | 1,079 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2015, then callable at 108.156, 104.078, par on and after Nov. 15, 2017
|
| Equity clawback: | 35% at 110.875 until Nov. 15, 2015
|
| Trade date: | Nov. 20
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| Settlement date: | Dec. 3
|
| Ratings: | Moody's: Caa2
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| Standard & Poor's: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 12% area yield, including 4 to 5 points of OID
|
| Marketing: | Roadshow
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