Viridian Group to sell €600 million five-year secured notes

By Paul Deckelman

New York, Jan. 28 – Viridian Group FundCo II Ltd. plans to sell €600 million of senior secured notes due 2020 (B1/ /B+), high-yield syndicate sources said on Wednesday.

The notes will be marketed to potential investors via a European roadshow that will begin on Thursday and run through Feb. 4.

Credit Suisse Securities will be the left side joint global coordinator and joint bookrunner and will handle billing and delivery with Deutsche Bank Securities Inc. also a joint global coordinator and joint bookrunner. RBS Securities Inc. will also be a joint global coordinator.

Other bookrunners on the deal will be Barclays, Commerzbank Capital Markets Corp. and J.P. Morgan Securities LLC.

The notes will be sold under Regulation S and Rule 144A and will have call protection for the first 2½ years after issue.

They will have a special clawback feature allowing the issuer to buy back up to 10% of the issue at a price of 103, in addition to a standard equity clawback allowing for repurchase of up to 40% of the notes. There will also be a provision allowing a change-of-control put at 101% of par.

Viridian, a Belfast, Northern Ireland-based electric utility service provider, was last in the high-yield market in March 2012 when it sold €313 million and $250 million of 11 1/8% senior secured notes due 2017.

The company plans to use the proceeds from the new bond deal to redeem all of those outstanding bonds, including prepayment premiums and accrued but unpaid interest; to repay expected drawings under its existing revolving credit facility; and to repay a portion of the amount outstanding under a subordinated shareholder loan, the proceeds of which will be used by parent Viridian Group Holdings Ltd. to repay a portion of the amounts outstanding under its junior credit facility. It will also use some of the proceeds to make payments in relation to the settlement of certain cross-currency swaps.

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