By Paul Deckelman
New York, March 22 - Wyle Services Corp. priced a $175 million issue of eight-year senior subordinated notes (B3/B+) on Monday to yield 10¾%, high yield syndicate sources said. The deal came at the wide end of market price talk envisioning a yield of 10½% to 10¾%.
The 10½% notes priced at 98.675.
A trader said he had heard the deal was well oversubscribed, with some $600 million in orders. The deal priced too late in the session for aftermarket activity.
The Rule 144A/Regulation S for life deal, which carries call protection for the first four years after issue, came to market after a March 16-19 roadshow via joint bookrunners J.P. Morgan Securities Inc. and Barclays Capital Inc., with Wells Fargo Securities as the co-manager.
Wyle, a McLean, Va.-based engineering firm specializing in high-tech testing, life sciences and technical-support services to federal government agencies including the Defense Department and NASA, plans to use the proceeds of its new offering to refinance debt.
The company is concurrently doing a $120 million bank debt deal via Barclays and J.P. Morgan, consisting of a $95 million term loan and a $25 million revolving credit facility, also for the purpose of debt refinancing. Closing on that deal is expected to take place at the end of this week.
| Issuer: | Wyle Services Corp.
|
| Amount: | $175 million
|
| Proceeds: | $172,681,250
|
| Maturity: | April 1, 2018
|
| Securities: | Senior subordinated notes
|
| Bookrunners: | J.P. Morgan Securities Inc. and Barclays Capital Inc.
|
| Co-manager: | Wells Fargo Securities
|
| Coupon: | 10½%
|
| Price: | 98.675
|
| Yield: | 10¾%
|
| Spread: | 746 basis points
|
| Call features: | Make-whole call at T+50 bps until April 1, 2014, then callable at 105.250, callable on or after April 1, 2015 at 102.625, and finally callable at par on or after April 1, 2016.
|
| Equity clawback: | For up to 35% of issue at 110.75% until April 1, 2013
|
| Change-of-control: | Put at 101% of principal plus accrued interest
|
| Trade date: | March 22
|
| Settlement date: | March 26 (T+4)
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A/Regulation S for life
|
| Price talk: | 10½% to 10¾% yield
|
| Marketing: | Roadshow
|
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