By Paul A. Harris
Portland, Ore., Aug. 10 – A dealer offering of €240.3 million of Veritas US Inc. and Veritas Bermuda Ltd. 7½% senior secured notes due Feb. 1, 2023 (B1/B+) priced at 93.5 to yield 8.841% on Wednesday, according to an informed source.
The reoffer price came rich to price talk in the 93 area.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Investment Bank, Jefferies LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. and Mizuho Securities were the sellers.
Dealers converted a Veritas hung bridge loan into the senior secured notes due Feb. 1, 2023 in the wake of the postponement of debt financing backing the buyout of the company by the Carlyle Group from Symantec Corp. in November 2015.
A $405 million tranche of the Veritas 7½% senior secured notes due Feb. 1, 2023 (B1/B+) was priced at 93.5 to yield 8.841% on Tuesday.
Veritas is a Mountain View, Calif.-based provider of storage and server management software solutions.
| Issuers: | Veritas US Inc. and Veritas Bermuda Ltd.
|
| Amount: | €240.3 million
|
| Maturity: | Feb. 1, 2023
|
| Securities: | Senior secured notes
|
| Sellers: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Investment Bank, Jefferies LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., Mizuho Securities
|
| Coupon: | 7½%
|
| Price: | 93.5
|
| Yield to maturity: | 8.841%
|
| Spread to maturity: | 932 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2019, then callable at 103.75
|
| Equity clawback: | 40% at 107.5 until to Feb. 1, 2019
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 7½% at 93
|
| Marketing: | Investor call
|
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