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Alliant upsizes to $825 million, sets final talk in two-part notes offering; pricing Thursday
By Paul A. Harris
Portland, Ore., Oct. 8 – Alliant Holdings Intermediate LLC and Alliant Holdings Co-Issuer upsized their two-part offering of high-yield notes to $875 million from $775 million by means of a $100 million shift of proceeds to the notes from the term loan, according to market sources.
The upsize came in the secured tranche of five-year senior secured notes (existing ratings B2/B), which grew to $525 million from $425 million. Talk on the secured notes firmed at 4¼%, on top of earlier official yield talk. Initial guidance was 4¼% to 4½. The secured notes become callable after two years at par plus 50% of the coupon.
The offering also features an unsecured tranche coming in the form of a $350 million add-on to the 6¾% senior notes due Oct. 15, 2027 (existing ratings Caa2/CCC+), which are callable on Oct. 15, 2022 at 103.375. Price talk for the add-on finalized at 103, at the rich end of earlier official talk of 102.5 to 103. Initial guidance was 102.5. The original $690 million issue priced in October 2019. A previous $300 million add-on priced in April 2020.
The Rule 144A and Regulation S for life deal is set to price Thursday afternoon.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Truist Securities Inc., BofA Securities Inc., Capital One Securities Inc., Goldman Sachs & Co. LLC, RBC Capital Markets Corp., Fifth Third Securities Inc., KKR and Macquarie are the joint bookrunners.
With the shift of proceeds to the secured notes, Alliant's first-lien term loan B3 was downsized to $325 million from $425 million.
The Eden Prairie, Minn.-based insurance brokerage plans to use the proceeds from its notes and loans, plus cash on its balance sheet, to make the 2020 special distribution, also for acquisitions of businesses under a letter of intent, with the remainder of proceeds, if any, to be used for general corporate purposes.
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