Published on 2/6/2023 in the Prospect News High Yield Daily.
New Issue: Alliant Holdings prices $1.25 billion five-year secured notes at par to yield 6¾%
By Paul A. Harris
Portland, Ore., Feb. 6 – Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc. priced a $1.25 billion issue of five-year senior secured notes (B2/B) at par to yield 6¾% on Monday, according to market sources.
The yield printed in the middle of yield talk in the 6¾% area. Initial guidance was in the high-6% to 7% area.
The deal was heard to be in the market on the back of a good amount of reverse inquiry, according to a sellside source.
Joint bookrunner Morgan Stanley & Co. LLC will bill and deliver. J.P. Morgan Securities LLC, SPCM, Capital One Securities Inc., Truist Securities Inc., RBC Capital Markets LLC, BofA Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co. LLC, KKR Capital Markets LLC, Macquarie Capital (USA) Inc. and R. Seelaus & Co. Inc. are also bookrunners.
The Eden Prairie, Minn.-based insurance brokerage plans to use the proceeds to repay bank debt and for general corporate purposes.
| Issuers: | Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc.
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| Amount: | $1.25 billion
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| Issue: | Senior secured notes
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| Maturity: | April 15, 2028
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| Bookrunners: | Morgan Stanley & Co. LLC (bill and deliver), J.P. Morgan Securities LLC, SPCM, Capital One Securities Inc., Truist Securities Inc., RBC Capital Markets LLC, BofA Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co. LLC, KKR Capital Markets LLC, Macquarie Capital (USA) Inc. and R. Seelaus & Co. Inc.
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| Coupon: | 6¾%
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| Price: | Par
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| Yield: | 6¾%
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| Spread: | 294 bps
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| First call: | April 15, 2025 at 103.375
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| Special call: | Issuer may call 10% of notes annually at 103 during non-call period
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| Trade date: | Feb. 6
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| Settlement date: | Feb. 13
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| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A for life and Regulation S
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| Price talk: | 6¾% area
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| Marketing: | Drive-by
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