Alliant Holdings expected to price $925 million offering of notes in two parts on Wednesday

By Paul A. Harris

Portland, Ore., Oct. 19 – Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc. plan to price $925 million two-part offering of high-yield notes on Wednesday, according to market sources.

The Rule 144A and Regulation S for life deal is coming in secured and unsecured tranches.

The secured tranche comes in the form of a $475 million add-on to the issuers' 4¼% senior secured notes due Oct. 15, 2027 (expected ratings B2/B). Those notes become callable on Oct. 15, 2023 at 102.125. The original $525 million issue priced in October 2020.

The add-on has initial guidance in the 100.5 area.

The unsecured portion is a $450 million tranche of new eight-year senior notes (expected ratings Caa2/CCC+) callable after three years at par plus 50% of the coupon, in the market with initial guidance in the 6% area.

The deal was set to kick off on a Tuesday conference call with investors.

Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. J.P. Morgan Securities LLC, SPC Capital Markets, BofA Securities Inc., Capital One Securities Inc., Goldman Sachs & Co. LLC, KKR Capital Markets LLC, RBC Capital Markets LLC, Truist Securities Inc., Fifth Third Securities Inc., Macquarie Capital (USA) Inc. and R. Seelaus & Co. Inc. are the joint bookrunners.

The Eden Prairie, Minn.-based insurance brokerage plans to use the proceeds plus additional senior secured term loans to fund its 2021 special distribution, with the remainder, if any, to be used for general corporate purposes.

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