Published on 10/3/2017 in the Prospect News High Yield Daily.
New Issue: West Corp. prices downsized $1.15 billion 8½% eight-year notes at 98.579 to yield 8¾%
By Paul A. Harris
Portland, Ore., Oct. 3 – West Corp. priced a downsized $1.15 billion issue of 8½% eight-year senior notes (B3/CCC+/B+) at 98.579 to yield 8¾% on Tuesday, according to a syndicate source.
The issue size was decreased from $1.35 billon, with $200 million of proceeds shifted to the concurrent term loan, increasing the loan size to $2.9 billion from $2.7 billion.
The deal priced at the tight end of the 8¾% to 9% yield talk, which was announced on Monday, along with changes to the bond covenants.
Joint bookrunner RBC Capital Markets LLC will bill and deliver. Credit Suisse Securities (USA) LLC, Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Goldman Sachs & Co. were also joint bookrunners.
Proceeds will be used to help fund the buyout of the Omaha-based provider of communication and network infrastructure services by Apollo Global Management LLC.
| Issuer: | Olympus Merger Sub, Inc. to be merged with and into West Corp.
|
| Amount: | $1.15 billion, increased from $1.35 billion
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| Maturity: | Oct. 15, 2025
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| Securities: | Senior notes
|
| Bookrunners: | RBC Capital Markets LLC (bill and deliver), Credit Suisse Securities (USA) LLC, Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co.
|
| Coupon: | 8½%
|
| Price: | 98.579
|
| Yield: | 8¾%
|
| Spread: | 650 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2020, then callable at 104.25
|
| Equity clawback: | 40% at 108.5 until Oct. 15, 2020
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| Trade date: | Oct. 3
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| Settlement date: | Oct. 10
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| Ratings: | Moody's: B3
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| S&P: CCC+
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| Fitch: B+
|
| Distribution: | Rule 144A for life and Regulation S
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| Price talk: | 8¾% to 9% (also covenant changes)
|
| Marketing: | Roadshow
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