By Paul A. Harris
St. Louis, Feb. 7 - Windsor Financing LLC priced an upsized $320.5 million two-part offering of notes on Tuesday that included one high-yield tranche, according to an informed source.
The company sold an upsized $52 million tranche of 6.927% 10-year subordinated amortizing notes (Ba2/BB), with an average weighted life of 7.1 years, at par resulting in a yield of 6.987% semi-annual equivalent.
The high-yield notes came at a 240 basis point spread to Treasuries, on the tight end of the Treasuries plus 240 to 245 bps price talk. The tranche was increased from $50 million.
In addition the company sold $268.5 million of 5.881% senior amortizing notes due July 15, 2017 (Baa3/BBB-), with an average weighted life of 5.9 years, at par to yield 5.924% semi-annual equivalent.
The investment-grade tranche came at a 140 basis point spread to Treasuries, on the tight end of the Treasuries plus 140 to 145 bps price talk. The issue was increased from $266 million.
Goldman Sachs & Co. ran the books for the notes, which were sold via Rule 144A and Regulation S. Calyon Securities was the joint lead manager for the Rule 144A and Regulation S notes. The co-managers were BNP Paribas, Scotia Capital and Wedbush Morgan Securities.
Proceeds will be used to repay outstanding project financing in full, with remaining proceeds to fund a distribution to Cogentrix Energy Inc.
The overall transaction was upsized from $316 million.
Windsor Financing owns 100% of membership interests in coal-fired electricity generating plants in Richmond, Va., and in Rocky Mount, N.C.
| Issuer: | Windsor Financing LLC
|
| Amount: | $320.5 million (increased from $316 million)
|
| Bookrunner: | Goldman Sachs & Co.
|
| Joint lead manager: | Calyon Securities
|
| Co-managers: | BNP Paribas, Scotia Capital, Wedbush Morgan Securities
|
| Trade date: | Feb. 7
|
| Settlement date: | Feb. 14
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| High-yield tranche
|
| Amount: | $52 million (increased from $50 million)
|
| Maturity: | Jan. 15, 2016
|
| Security description: | Subordinated amortizing notes
|
| Weighted average life: | 7.1-years
|
| Coupon: | 6.927%
|
| Price: | Par
|
| Yield: | 6.987% (SAE)
|
| Spread: | 240 bps
|
| Call protection: | Make-whole call at Treasuries plus 25 bps
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Price talk: | Treasuries plus 240-245 bps
|
|
|
| Investment-grade tranche
|
| Amount: | $268.5 million (increased from $266 million)
|
| Maturity: | July 15, 2017
|
| Security description: | Senior amortizing notes
|
| Average weighted life: | 5.9-years
|
| Coupon: | 5.881%
|
| Price: | Par
|
| Yield: | 5.924% (SAE)
|
| Spread: | 140 bps
|
| Call protection: | Make-whole call at Treasuries plus 25 bps
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Price talk: | Treasuries plus 140-145 bps
|
|
|
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