By Paul A. Harris
Portland, Ore., May 11 - Eagle Parent, Inc., the special entity formed to finance the merger of Epicor Software Corp. and Activant Group Inc., priced a $465 million issue of eight-year senior notes (Caa1/CCC+/) at par to yield 8 5/8% on Wednesday, according to an informed source.
The yield printed at the tight end of price talk, which had been set in the 8¾% area.
Bank of America Merrill Lynch is the left lead bookrunner for the Rule 144A with registration rights offering. RBC Capital Markets is the joint bookrunner.
Proceeds from the notes, as well as from a $945 million credit facility and $647 million of equity, will be used to fund Apax Partners' buyout of Epicor and Activant.
Epicor is an Irvine, Calif.-based provider of enterprise business software services. Activant is a Livermore, Calif.-based technology provider of ERP and point-of-sale software.
| Issuer: | Eagle Parent, Inc. (Epicor Software Corp./Activant Group Inc.)
|
| Amount: | $465 million
|
| Maturity: | May 1, 2019
|
| Securities: | Senior notes
|
| Left bookrunner: | Bank of America Merrill Lynch
|
| Joint bookrunner: | RBC Capital Markets
|
| Co-manager: | Mizuho Securities USA Inc.
|
| Coupon: | 8 5/8%
|
| Price: | Par
|
| Yield: | 8 5/8%
|
| Spread: | 578 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until May 1, 2015, then callable at 104.313, 102.156, par on and after May 1, 2017
|
| Equity clawback: | 35% at 108.625 until May 1, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | May 11
|
| Settlement date: | May 16
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 8¾% area
|
| Marketing: | Roadshow
|
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