By Paul A. Harris
Portland, Ore., June 22 – Baffinland Iron Mines Corp. and Baffinland Iron Mines LP priced an upsized $575 million issue of 8¾% eight-year senior secured notes (Caa1/B-) at 99.282 to yield 8 7/8% on Friday, according to market sources.
The deal was increased from $550 million.
The yield printed in the middle of the 8¾% to 9% yield talk and in line with initial price talk in the high 8% area to 9%.
The deal was heard to be oversubscribed, according to a trader who added that the orders came to 1.5 times the original $550 million deal size.
Morgan Stanley & Co. LLC, Goldman Sachs & Co. and Citigroup Global Markets Inc. were the joint bookrunners.
The Toronto-based mining company plans to use the proceeds to repurchase its outstanding 2022 notes, to pay down its revolver including associated breakage costs, if any, and for working capital and general corporate purposes. The additional proceeds resulting from the $25 million upsizing will also be used for general corporate purposes.
| Issuer: | Baffinland Iron Mines Corp. and Baffinland Iron Mines LP
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| Amount: | $575 million, increased from $550 million
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| Maturity: | July 15, 2026
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| Securities: | Senior secured notes
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| Bookrunners: | Morgan Stanley, Goldman Sachs, Citigroup
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| Coupon: | 8¾%
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| Price: | 99.282
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| Yield: | 8 7/8%
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| Spread: | 598 bps
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| First call: | Make-whole call at Treasuries plus 50 bps until July 15, 2021, then callable at 106.563
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| Equity clawback: | 40% at 108.75 until July 15, 2021
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| Trade date: | June 22
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| Settlement date: | June 27
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| Ratings: | Moody’s: Caa1
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 8¾% to 9%
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| Marketing: | Roadshow
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