By Paul A. Harris
Portland, Ore., Aug. 4 – Anixter Inc. priced a $350 million issue of non-callable 7.5-year senior notes (Ba3/BB) at par to yield 5½% on Tuesday, according to a syndicate source.
The yield printed on top of yield talk and also on top of initial guidance, according to market sources.
Wells Fargo Securities LLC was the left bookrunner. BofA Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners.
The Glenview, Ill.-based company plans to use the proceeds, along with cash on hand, as well as borrowings on a new accounts receivable facility and a new Canadian term loan, to fund its acquisition of HD Supply Holdings, Inc.’s Power Solutions business.
Anixter is a distributor of enterprise cabling and security solutions, electrical and electronic wire and cable and OEM supply fasteners and other small parts.
| Issuer: | Anixter Inc.
|
| Amount: | $350 million
|
| Maturity: | March 1, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities, LLC
|
| Joint bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Co-managers: | SunTrust Robinson Humphrey, Inc., PNC Capital Markets LLC
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 346 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Special mandatory redemption: | Notes must be redeemed at par plus accrued interest if the acquisition does notes close on or prior to Jan. 15, 2016
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5½% area
|
| Marketing: | Quick to market
|
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