By Paul A. Harris
Portland, Ore., Sept. 17 – York Risk Services Holdings Corp. priced a $270 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 8½% on Wednesday, according to a syndicate source.
The yield printed at the wide end of the 8¼% to 8½% yield talk.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, RBC Capital Markets LLC, Barclays, BMO Capital Markets Corp. and Nomura Securities International Inc. were the bookrunners.
Proceeds, together with proceeds from a senior secured credit facility, equity contributions and cash on the balance sheet, will be used to help fund the buyout of the company by Onex Corp. from ABRY Partners and to retire certain existing debt.
The issuing entity will be Onex York Acquisition Corp., which is to be merged with York Insurance Parent Corp. and is to be renamed York Risk Services Holdings Corp.
York Risk Services is a Parsippany, N.J.-based provider of risk management, claims management and managed care services.
| Issuer: | Onex York Acquisition Corp., to be merged with York Insurance Parent Corp., to be renamed York Risk Services Holdings Corp.
|
| Amount: | $270 million
|
| Maturity: | Oct. 1, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, RBC Capital Markets LLC, Barclays, BMO Capital Markets Corp., Nomura Securities International Inc.
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 614 bps
|
| First call: | Oct. 1, 2018 at 104.25
|
| Trade date: | Sept. 17
|
| Settlement date: | Oct. 1
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Roadshow
|
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