By Paul A. Harris
Portland, Ore., Oct. 15 – Lowell Group sold £795 million of high-yield notes in two tranches on Wednesday, according to a market source.
The deal, via joint bookrunners Goldman Sachs International, Credit Suisse, Citigroup, ING, JP Morgan and HSBC, saw £10 million of proceeds shifted to the secured tranche from the unsecured tranche.
Special-purpose vehicle Garfunkelux Holdco 3 SA priced an upsized £565 million tranche of seven-year senior secured notes (B2/B+) at par to yield 8½%.
The tranche size was increased from £555 million. The yield printed at the tight end of the 8½% to 8¾% yield talk. Goldman Sachs will bill and deliver for the secured notes.
Garfunkelux Holdco 2 SA, the parent company of Lowell, priced a downsized £230 million tranche of eight-year senior unsecured notes (Caa1/B-) at par to yield 11%.
The tranche size was decreased from £240 million. The yield printed in the middle of the 10¾% to 11¼% yield talk. Credit Suisse will bill and deliver for the unsecured notes.
Proceeds will be used to help fund the leveraged buyout of the Leeds, England debt collector by Permira, to redeem Lowell’s 5 7/8% senior secured notes due 2019 and 10¾% senior secured notes due 2019, and for general corporate purposes.
| Company: | Lowell Group
|
| Amount: | £795 million
|
| Bookrunners: | Goldman Sachs, Credit Suisse, Citigroup, ING, JPMorgan, HSBC
|
| Trade date: | Oct. 14
|
| Settlement date: | Oct. 19
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Secured notes
|
| Issuer: | Garfunkelux Holdco 3 SA
|
| Amount: | £565 million, increased from £555 million
|
| Maturity: | Nov. 1, 2022
|
| Securities: | Senior secured notes
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 707 bps
|
| First call: | Nov. 1, 2018 at 104.25
|
| Ratings: | Moody’s: B2
|
| Standard & Poor’s: B+
|
| Price talk: | 8½% to 8¾%
|
| Bill and deliver: | Goldman Sachs
|
|
|
| Unsecured notes
|
| Issuer: | Garfunkelux Holdco 2 SA
|
| Amount: | £230 million, decreased from £240 million
|
| Maturity: | Nov. 1, 2023
|
| Securities: | Senior unsecured notes
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 946 bps
|
| First call: | Nov. 1, 2018 at 108.25
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 10¾% to 11¼%
|
| Bill and deliver: | Credit Suisse
|
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