By Paul A. Harris
Portland, Ore., May 5 – Allied Universal priced $2.96 billion of high-yield notes in three tranches on Wednesday, according to market sources.
The deal, backing Allied Universal's acquisition of London-based security services provider G4S, included an upsized $2 billion amount of secured paper in two tranches
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas LuxCo 4 Sarl priced an upsized $1.225 billion (from $900 million) amount of seven-year senior secured notes (B2/B) at par to yield 4 5/8%.
Atlas LuxCo 4 Sarl/Allied Universal Holdco LLC/Allied Universal Finance Corp. priced $775 million of seven-year senior secured notes (B2/B) at par to yield 4 5/8%.
The notes in both secured tranches priced on top of final talk, and tight to earlier talk in the 4¾% area. Initial guidance was in the high 4% to 5% area.
The sole unsecured tranche, via Allied Universal Holdco LLC/Allied Universal Finance Corp., came downsized to $960 million from $1.285 billion. The eight-year senior notes (Caa1/CCC+) priced at par to yield 6%, also on top of final talk, and inside of the 6¼% to 6½% talk. Initial guidance in the mid-to-high 6% area.
In the secondary market, late Wednesday, the secured notes in both tranches were hanging in at par bid, par ¼ offered, while the unsecured notes were trading better at 101 1/8 bid, 101 5/8 offered, a trader said.
The company moved $325 million to the secured portion from the unsecured portion.
Credit Suisse Securities (USA) LLC was the left bookrunner. Joint bookrunners were Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., SG Americas Securities LLC, ING Financial Markets LLC, MUFG and Truist Securities Inc.
The Santa Ana, Calif.-based provider of security services plans to use the proceeds to pay off the bridge loan used, along with cash on hand and certain equity contributions, to fund the G4S acquisition.
| Company: | Allied Universal
|
| Amount: | $2.96 billion
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., SG Americas Securities LLC, ING Financial Markets LLC, MUFG and Truist Securities Inc.
|
| Trade date: | May 5
|
| Settlement date: | May 14
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| 2028 notes, first tranche
|
| Issuer: | Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas LuxCo 4 Sarl
|
| Amount: | $1.225 billion, increased from $900 million
|
| Maturity: | June 1, 2028
|
| Securities: | Senior secured notes
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 336 bps
|
| Call protection: | Three years
|
| Special call: | 10% of the notes annually at 103 during the non-call period
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Price talk: | 4 5/8%, revised from 4¾% area
|
|
|
| 2028 notes, second tranche
|
| Issuer: | Atlas LuxCo 4 Sarl/Allied Universal Holdco LLC/Allied Universal Finance Corp.
|
| Amount: | $775 million
|
| Maturity: | June 1, 2028
|
| Securities: | Senior secured notes
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 336 bps
|
| Call protection: | Three years
|
| Special call: | 10% of the notes annually at 103 during the non-call period
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Price talk: | 4 5/8%, revised from 4¾% area
|
|
|
| 2029 notes
|
| Issuer: | Allied Universal Holdco LLC/Allied Universal Finance Corp.
|
| Amount: | $960 million, decreased from $1.285 billion
|
| Maturity: | June 1, 2029
|
| Securities: | Senior notes
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 459 bps
|
| Call protection: | Three years
|
| Special call: | 10% of the notes annually at 103 during the non-call period
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Price talk: | 6%, revised from 6¼% to 6½%
|
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