By Paul A. Harris
Portland, Ore., May 13 - Australia's Barminco Finance Pty Ltd. priced a downsized $485 million issue of five-year senior notes (B1/B-) at par to yield 9% on Monday, according to a market source.
The deal was downsized from $500 million.
The yield printed at the tight end of the 9% to 9¼% yield talk.
The deal, which launched as a five-year senior note with two years of call protection, was restructured into a five-year bullet, and a three-year 50% equity clawback was added.
J.P. Morgan Securities LLC, Goldman Sachs & Co. and HSBC Securities (USA) LLC are the joint bookrunners for the deal.
Proceeds will be used to refinance debt and for general corporate purposes.
Barminco is a Hazelmere, Western Australia-based international mining contractor.
| Issuer: | Barminco Finance Pty Ltd.
|
| Amount: | $485 million, decreased from $500 million
|
| Maturity: | June 1, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co., HSBC Securities (USA) LLC
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 818 bps
|
| Call protection: | Non-callable (call protection extended from two years)
|
| Make-whole: | Treasuries plus 50 bps
|
| Equity clawback: | 50% at 109.0 until June 1, 2016
|
| Investor put: | 101% upon change of control
|
| Trade date: | May 13
|
| Settlement date: | May 20
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Extended roadshow (investor meetings in London added after the deal launched)
|
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