By Paul A. Harris
Portland, Ore., Feb. 29 – Solera, LLC upsized the dollar-denominated tranche of its eight-year senior notes (Caa1/B-) to $1.73 billion from $1.28 billion as it eliminated a proposed $450 million equivalent tranche of proposed euro-denominated notes on Monday, according to a syndicate source.
The new notes were priced at 95 to yield 11.472%.
The reoffer price came at the rich end of the 94 to 95 price talk. The yield printed near the tight end of the 11.47% to 11.67% yield talk.
That price talk had been revised from earlier official talk of 10¾% to 11%.
There were also covenant changes.
The deal hit the market sized at $2.03 billion before $300 million was shifted to the bank loan, reducing the bond size to it final $1.73 billion size. The shift of proceeds effected a reduction in senior unsecured leverage, which had been a prominent concern among investors, sources said.
Goldman Sachs & Co. is the left bookrunner for the Rule 144A and Regulation S offering. Citigroup Global Markets Inc., Jefferies LLC, Macquarie Capital, Nomura and UBS Investment Bank are the joint bookrunners.
The notes become callable after three years at par plus 75% of the coupon.
Proceeds will be used to help fund the buyout of Solera Holdings, Inc., a Westlake, Texas-based provider of software and services to the automobile insurance industry, by Vista Equity Partners.
The co-issuer is special-purpose vehicle Solera Finance, Inc.
| Issuers: | Solera, LLC and Solera Finance, Inc.
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| Face amount: | $1.73 billion
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| Proceeds: | $1,643,500,000
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| Maturity: | March 1, 2024
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| Securities: | Senior notes
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| Left bookrunner: | Goldman Sachs & Co.
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| Joint bookrunners: | Citigroup Global Markets Inc., Jefferies LLC, Macquarie Capital, Nomura, UBS Investment Bank
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| Co-manager: | KKR Capital Markets
|
| Coupon: | 10½%
|
| Price: | 95
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| Yield: | 11.472%
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| Call: | March 1, 2019 at 107.875
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| Trade date: | Feb. 29
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| Settlement date: | March 3
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| Ratings: | Moody’s: Caa1
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| Standard & Poor's: B-
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| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 94 to 95 to yield 11.47% to 11.67%, revised from 10¾% to 11%
|
| Marketing: | Roadshow
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