Published on 9/21/2010 in the Prospect News High Yield Daily.
New Issue: Tomkins prices upsized $1.15 billion eight-year second-lien notes at par to yield 9%
By Paul A. Harris
St. Louis, Sept. 21 - Pinafore, LLC and Pinafore, Inc., special purpose vehicles for Tomkins plc, priced an upsized $1.15 issue of eight-year second-lien notes (B1/B+) at par to yield 9% on Tuesday, according to an informed source.
The yield printed at the tight end of the 9% to 9¼% talk.
Bank of America Merrill Lynch, Citigroup, Barclays Capital, RBC Capital Markets and UBS Investment Bank were the joint bookrunners.
Proceeds will be used to help finance the leveraged buyout of the company by the Canada Pension Plan Investment Board and Onex Corp.
The second-lien notes were upsized from $1 billion, while the equity portion of the financing was descreased.
A previously contemplated $600 million offering of first-lien notes was withdrawn, with the proceeds shifted to the bank loan portion of the financing.
Tomkins is a London-based manufacturer of automotive, building and industrial products.
| Issuers: | Pinafore, LLC and Pinafore, Inc. (Tomkins plc)
|
| Amount: | $1.15 billion, increased from $1 billion
|
| Maturity: | Oct. 1, 2018
|
| Securities: | Senior secured second-lien notes
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup, Barclays Capital, RBC Capital Markets, UBS Investment Bank
|
| Co-managers: | Scotia Capital, SunTrust Robinson Humphrey
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 674 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2014 at 104.50, 102.25, par on or after Oct. 1, 2016; special call for 10% callable annually at 103.0 until Oct. 1, 2013
|
| Equity clawback: | 35% at 109.0 until Oct. 1, 2013
|
| Trade date: | Sept. 21
|
| Settlement date: | Sept. 29
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Roadshow
|
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