By Paul A. Harris
Portland, Ore., Jan. 24 - Waterjet Holdings Inc. priced an upsized $225 million issue of six-year senior secured notes (B2/B/) at par to yield 7 5/8% on Friday, according to a market source.
The deal was upsized from $200 million.
The yield printed at the tight end of yield talk in the 7¾% area.
Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners.
Proceeds, together with equity from sponsor American Industrial Partners and funds from the Advanced Systems transaction, will be used to finance a merger with Flow International Corp., to pay off Flow's revolver and to repay other debt.
With the upsizing of the bonds, the equity contribution for the merger will be reduced.
Waterjet, a waterjet cutting technology company, is being formed by the combination of Kent, Wash.-based Flow International Corp. and Baxter Springs, Kan.-based KMT Group AB.
| Issuer: | Waterjet Holdings Inc.
|
| Amount: | $225 million, increased from $200 million
|
| Maturity: | Feb. 1, 2020
|
| Securities: | Senior secured notes
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Call protection: | Three years
|
| Trade date: | Jan. 24
|
| Settlement date: | Jan. 31
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% area
|
| Marketing: | Roadshow
|
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