By Abigail W. Adams
Portland, Me., Nov. 9 – Veritas US Inc. and Veritas Bermuda Ltd. priced an upsized $750 million, from $500 million, add-on to their 7½% senior secured notes due Sept. 1, 2025 (B2/B) at 102 to yield 6.994% on Monday, according to a market source.
Pricing came toward the wide end of talk for a reoffer price of 102 to 102.5.
Early whisper had the notes coming with a reoffer price in the 101.5 area, sources said.
Morgan Stanley & Co. LLC (lead left), BofA Securities Inc., UBS Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Jefferies LLC, Mizuho Securities USA Inc. and SMBC Nikko Securities America Inc. were bookrunners for the Rule 144A and Regulation S offering.
The notes are non-callable until Sept. 1, 2021.
There is an equity clawback for up to 40% of the notes until Sept. 1, 2021.
Proceeds will be used to redeem a portion of Veritas’ 7½% senior secured notes due 2023.
Veritas priced a $1 billion issue of the 7½% senior notes due 2025 on Aug. 13.
Veritas is a Santa Clara, Calif.-based data management company.
| Issuers: | Veritas US Inc. and Veritas Bermuda Ltd.
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| Amount: | $750 million
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| Maturity: | Sept. 1, 2025
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| Securities: | Tap of 7½% senior secured notes due Sept. 1, 2025
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| Bookrunners: | Morgan Stanley & Co. LLC (lead left), BofA Securities Inc., UBS Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Jefferies LLC, Mizuho Securities USA Inc. and SMBC Nikko Securities America Inc.
|
| Coupon: | 7½%
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| Price: | 102
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| Yield: | 6.994%
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| Call protection: | Non-callable until Sept. 1, 2021
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| Trade date: | Nov. 9
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| Settlement date: | Nov. 27
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| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Reoffer price of 102 to 102.5
|
| Marketing: | Quick to market
|
| Original issue: | $1 billion issue priced at par on Aug. 13
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