New Issue: USI prices $620 million eight-year notes at par to yield 7½%

By Paul A. Harris

Portland, Ore., Dec. 14 – USI Inc. priced a $620 million issue of eight-year senior notes (Caa1/CCC+) at par to yield 7½% in a Thursday drive-by, according to market sources.

The yield printed at the tight end of the 7½% to 7¾% yield talk, and well inside of initial guidance in the high 7% to 8% area.

Morgan Stanley & Co. LLC, KeyBanc Capital Markets, BofA Securities, Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Stonepoint, Citigroup Global Markets Inc., ING Financial Markets LLC and Macquarie were joint bookrunners.

The Valhalla, N.Y.-based insurance brokerage plans to use the proceeds to redeem senior notes that mature in 2025.

Issuer:	USI Inc.
Amount:	$620 million
Securities:	Senior notes
Maturity:	Jan. 15, 2032
Joint books:	Morgan Stanley & Co. LLC, KeyBanc Capital Markets, BofA Securities, Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Stonepoint, Citigroup Global Markets Inc., ING Financial Markets LLC, Macquarie
Coupon:	7½%
Price:	Par
Yield:	7½%
Spread:	Treasuries plus 357 bps
First call:	Jan. 15, 2027 at 103.75
Trade date:	Dec. 14
Settlement date:	Dec. 29
Rating:	Moody’s: Caa1
	S&P: CCC+
Distribution:	Rule 144A for life and Regulation S
Price talk:	7½% to 7¾%
Marketing:	Drive-by

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.