Domestic & General sets price talk in £630 million three-part notes offering; pricing Tuesday

By Paul A. Harris

Portland, Ore., July 15 – Domestic & General set price talk in its £630 million three-part offering of high-yield notes on Monday, according to a market source.

The deal features £480 million of senior secured notes in two tranches from issuing entity Galaxy Bidco Ltd.: £230 million of seven-year fixed-rate notes, callable after three years at par plus 50% of the coupon, talked to yield 6¼% to 6½%, and £250 million of seven-year floating-rate notes, callable after one year at 101, talked at a 550 basis points to 575 bps spread to Libor.

In addition, Galaxy Finco is selling £150 million of eight-year senior unsecured notes, callable after three years at par plus 50% of the coupon, talked to yield 8¾% to 9%.

Books close at 5:30 a.m. ET on Tuesday, and the deal is set to price thereafter.

Sole physical bookrunner and global coordinator Barclays will bill and deliver for the Rule 144A and Regulation S deal. BofA Securities Inc. and Credit Suisse are also global coordinators.

Lloyds Bank Corporate Markets, Mizuho Securities USA Inc. and NatWest Markets are joint bookrunners.

Proceeds will be used to fund the acquisition of the Bedworth, England-based home-appliance warranty provider by CVC Fund VII and the Abu Dhabi Investment Authority and to refinance debt.

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