By Paul A. Harris
Portland, Ore., Oct. 20 – Greatbatch Ltd. priced a $360 million issue of eight-year senior notes (Caa1/B-) at par to yield 9 1/8% on Tuesday, according to an informed source.
The yield printed 12.5 basis points beyond the wide end of the 8¾% to 9% yield talk.
Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets were the joint bookrunners.
The Frisco, Texas-based medical device company plans to use the proceeds to help fund the acquisition of Lake Region Medical, a Wilmington, Mass., provider of outsourced manufacturing and engineering services to the medical device industry.
The bond portion of the financing was decreased by $75 million from $435 million last week as the company shifted the proceeds to its concurrent term loan A.
| Issuer: | Greatbatch Ltd.
|
| Amount: | $360 million
|
| Maturity: | Nov. 1, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets
|
| Coupon: | 9 1/8%
|
| Price: | Par
|
| Yield: | 9 1/8%
|
| Spread: | 724 bps
|
| First call: | Nov. 1, 2018 at 106.844
|
| Equity clawback: | 40% at 109.125 until Nov. 1, 2018
|
| Trade date: | Oct. 20
|
| Settlement date: | Oct. 27
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% to 9%
|
| Marketing: | Roadshow
|
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