By Paul A. Harris
Portland, Ore., Aug. 2 – TriNet Group, Inc. priced a downsized $400 million issue of eight-year senior notes (Ba2/BB) at par to yield 7 1/8% on Wednesday, according to market sources.
The issue size decreased from $500 million.
The yield printed at the wide end of yield talk in the 7% area, which was also the initial guidance.
The deal met with modest demand, according to trader, who added that books were heard to have built sufficiently to cover the size of the notes offering, but not much further.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, BMO Capital Markets Corp., Citizens Capital Markets Inc., HSBC Securities (USA) Inc., KeyBank Capital Markets Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Truist Securities Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
Proceeds will be used to fund an equity tender offer and share repurchase, with any remaining proceeds to be used for general corporate purposes.
TriNet, a cloud-based professional employer organization for small and medium-sized businesses, announced in a Tuesday press release that it had undertaken a credit amendment, which increased the size of its revolver to $700 million and extend the maturity date five years from closing.
The company maintains headquarters in Dublin, Calif.
| Issuer: | TriNet Group, Inc.
|
| Amount: | $400 million, decreased from $500 million
|
| Issue: | Senior notes
|
| Maturity: | Aug. 15, 2031
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, BMO Capital Markets Corp., Citizens Capital Markets Inc., HSBC Securities (USA) Inc., KeyBank Capital Markets Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Truist Securities Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 306 bps
|
| First call: | Aug. 15, 2026 at 103.563
|
| Trade date: | Aug. 2
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7% area
|
| Marketing: | Roadshow
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