Published on 12/9/2004 in the Prospect News High Yield Daily.
New Issue: Waste Recycling prices £500 million at par
By Paul A. Harris
St. Louis, Dec. 9 - Waste Recycling Group Ltd. sold £500 million of 10-year notes in a two tranches on Thursday, according to a market source.
WRG Finance plc, the newly formed parent of WRG Acquisitions plc, priced a downsized £200 million (from £250 million) of 10-year senior fixed-rate notes (B3/B) at par to yield 9%. Price talk was 8¾%-9%.
Meanwhile WRG Acquisitions plc, the parent of Waste Recycling Group Ltd., sold an upsized £300 million (from £250 million) of 10-year second-lien floating-rate notes (B1/B+) at par to yield Libor plus 350 basis points, right on top of the Libor plus 350 basis points price talk.
Proceeds will be used to refinance debt and fund a dividend. The equity sponsor is Terra Firma Capital.
The issuer is a Doncaster, U.K.-based company that handles household, commercial and industrial waste.
| Issuer: | Waste Recycling Group Ltd.
|
| Amount: | £500 million
|
| Bookrunners: | Deutsche Bank Securities, Merrill Lynch & Co., Barclays Capital
|
| Trade date: | Dec. 9
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| Settlement date: | Dec. 15
|
|
|
| Fixed-rate senior notes
|
| Issuer: | WRG Finance plc (newly formed parent of WRG Acquisitions plc)
|
| Amount: | £200 million (decreased from £250 million)
|
| Maturity: | Dec. 15, 2014
|
| Security description: | Senior fixed-rate notes
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 448 basis points
|
| Call features: | Callable after Dec. 15, 2009 at 104.50, 103.0, 101.50, par on and after Dec. 15, 2012
|
| Equity clawback: | Until Dec. 15, 2007 for 35% at 109.0
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
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| Price talk: | 8¾%-9%
|
|
|
| Second-lien floating-rate notes
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| Issuer: | WRG Acquisitions plc (parent of Waste Recycling Group Ltd.)
|
| Amount: | £300 million (increased from £250 million)
|
| Maturity: | Dec. 15, 2014
|
| Security description: | Second-lien floating-rate notes
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| Coupon: | Libor plus 350 basis points
|
| Price: | Par
|
| Yield: | Libor plus 350 basis points
|
| Call features: | Callable after Dec. 15, 2006 at 102, 101, par on and after Dec. 15, 2008
|
| Equity clawback: | Until Dec. 15, 2007 for 35% at par plus applicable coupon
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Price talk: | Libor plus 350-375 basis points
|
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