Published on 10/20/2021 in the Prospect News High Yield Daily.
New Issue: Alliant Holdings downsizes bond deal to $675 million, prices notes in two tranches
By Paul A. Harris
Portland, Ore., Oct. 20 – Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc. downsized their two-part offering of high-yield notes to $675 million from $925 million, shifting $250 million of proceeds to a concurrent term loan, according to market sources.
The deal featured a downsized $225 million add-on to the 4¼% senior secured notes due Oct. 15, 2027 (B2/B) at 100.5 to yield 4.154%. The issue price came at the cheap end of the 100.5 to 100.75 price talk and in the middle of initial guidance in the 100.5 area. The add-on decreased from $475 million.
The deal also included a $450 million tranche of new eight-year senior notes (Caa2/CCC+) that priced at par to yield 5 7/8%. The yield printed at the tight end of yield talk in the 6% area that came on top of initial guidance.
Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. Joint bookrunners were 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.
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.
The shift of proceeds from the bonds, all of it extracted from the secured portion of the deal, increased the size of the concurrent term loan to $725 million from $475 million.
| Issuer: | Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc.
|
| Amount: | $675 million, decreased from $925 million
|
| Left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
|
| Joint bookrunners: | 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.
|
| Trade date: | Oct. 20
|
| Settlement date: | Nov. 3
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Secured tranche
|
| Amount: | $225 million, decreased from $475 million
|
| Maturity: | Oct. 15, 2027
|
| Securities: | Add-on to 4¼% senior secured notes due Oct. 15, 2027
|
| Coupon: | 4¼%
|
| Price: | 100.5
|
| Yield to maturity: | 4.154%
|
| Spread: | 280 bps
|
| First call: | Oct. 15, 2023 at 102.125
|
| Price talk: | 100.5 to 100.75
|
|
|
| Unsecured tranche
|
| Amount: | $450 million
|
| Maturity: | Nov. 1, 2029
|
| Securities: | Senior notes
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | 437 bps
|
| First call: | Nov. 1, 2024 at 102.938
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
