By Cristal Cody
Tupelo, Miss., Jan. 17 – TPG Specialty Lending Inc. priced $150 million of 4.5% five-year notes (BBB-/BBB-) on Wednesday at a spread of 212.5 basis points over Treasuries, according to a market source, a news release and filings with the Securities and Exchange Commission.
The notes came tighter than initial talk in the Treasuries plus 225 bps area and on top of later guidance at Treasuries plus 212.5 bps.
The notes priced at 99.969 to yield 4.507%.
BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc. Mizuho Securities USA LLC, Barclays, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Raymond James & Associates, Inc. were the bookrunners.
Proceeds will be used to pay down debt outstanding under the company’s revolving credit facility.
In connection with the offering, TSLX said it intends to enter into an interest rate swap to better align the interest rates of its liabilities with its investment portfolio, which consists mostly of floating rate loans.
TPG Specialty Lending is a Fort Worth, Texas-based specialty finance company focused on lending to middle-market companies.
| Issuer: | TPG Specialty Lending Inc.
|
| Amount: | $150 million
|
| Description: | Notes
|
| Maturity: | Jan. 22, 2023
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc. Mizuho Securities USA LLC, Barclays, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Raymond James & Associates, Inc.
|
| Co-managers: | TPG Capital BD, LLC and Comerica Securities, Inc.
|
| Coupon: | 4.5%
|
| Price: | 99.969
|
| Yield: | 4.507%
|
| Spread: | Treasuries plus 212.5 bps
|
| Call feature: | Make-whole call at price equal to greater of par or Treasuries plus 35 bps; on or after Dec. 22, 2022 at par
|
| Change-of-control put: | Par plus accrued and unpaid interest
|
| Trade date: | Jan. 17
|
| Settlement date: | Jan. 22
|
| Ratings: | S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A, Regulation S
|
| Price talk: | Treasuries plus 225 bps area
|
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