Published on 8/1/2013 in the Prospect News High Yield Daily.
New Issue: WCI Communities details $200 million issue of 6 7/8% eight-year notes
By Paul Deckelman
New York, Aug. 1 - WCI Communities, Inc. new $200 million issue of 6 7/8% senior notes due 2021 (B3/B-) priced at par on Wednesday after a short roadshow, a junk market source said.
The roadshow began on Monday.
The pricing was in line with pre-deal guidance envisioning a yield in the 6 7/8% area.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. were the joint bookrunners for the offering.
A source said that the Rule 144A and Regulation S with registration rights transaction priced off the investment-grade desks.
The notes come with three years of call protection, as well as standard equity clawback and change-of-control provisions.
The Bonita Springs, Fla.-based real estate developer and homebuilder plans to use the proceeds to prepay its $125 million of outstanding senior secured term notes due 2017 at 101 plus accrued interest and for general corporate purposes, including the acquisition and development of land and home construction.
| Issuer: | WCI Communities, Inc.
|
| Amount: | $200 million
|
| Description: | Senior notes
|
| Maturity: | Aug. 15, 2021
|
| Joint bookrunners | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread | 487 basis points over UST 2% due 7/30/20
|
| Call protection: | Non-callable for first three years after issue, outside of make-whole call at T+50 bps; callable on or after Aug. 15, 2016 at 105.156, then on or after Aug. 15, 2017 at 103.438, on or after Aug. 15, 2018 at 101.719, and finally, on or after Aug. 15, 2019 at par.
|
| Equity clawback: | For up to 35% of issue at 106.875 prior to Aug. 15, 2016
|
| Chang-of-control | Putable at 101% plus accrued interest upon a change-of-control event
|
| Trade date: | July 31
|
| Settlement: | Aug. 7
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| Ratings: | Moody's: B3
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| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Guidance: | 6 7/8% area
|
| Marketing: | Brief roadshow
|
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