By Paul A. Harris
Portland, Ore., Nov. 13 – Qorvo Inc. priced $1 billion of senior notes (Ba1/BB+) in two tranches on Friday, according to a syndicate source.
The deal included $450 million of eight-year notes, which priced at par to yield 6¾%. The yield printed 50 basis points beyond the wide end of the 6% to 6¼% yield talk, according to market sources. Early guidance was in the high 5% yield context.
Qorvo also priced $550 million of 10-year notes at par to yield 7%. The yield printed 50 bps beyond the wide end of the 6¼% to 6½% yield talk. Early guidance was in the low 6% yield context.
BofA Merrill Lynch was the left bookrunner. Morgan Stanley & Co. LLC, TD Securities and Wells Fargo Securities LLC were the joint bookrunners.
The Greensboro, N.C.-based technology company plans to use the proceeds for general corporate purposes, including share repurchases and the repayment of debt under its revolver.
Qorvo provides core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications.
| Issuer: | Qorvo, Inc.
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Morgan Stanley & Co., TD Securities, Wells Fargo Securities LLC
|
| Co-managers: | BB&T, BNP Paribas, Deutsche Bank Securities Inc., MUFG
|
| Trade date: | Nov. 13
|
| Settlement date: | Nov. 19
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
|
| Amount: | $450 million
|
| Maturity: | Dec. 1, 2023
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 461 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2018, then callable at a premium
|
| Price talk: | 6% to 6¼%
|
|
|
| 10-year notes
|
| Amount: | $550 million
|
| Maturity: | Dec. 1, 2025
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 472 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2020, then callable at a premium
|
| Price talk: | 6¼% to 6½%
|
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