New Issue: Allied Universal prices upsized $1 billion 7 7/8% seven-year secured notes at par

By Paul A. Harris

Portland, Ore., Feb. 2 – Allied Universal priced an upsized $1 billion issue of Allied Universal Holdco LLC seven-year senior secured notes (B3/B) at par to yield 7 7/8% on Friday, according to market sources.

The deal, which doubled in size from $500 million, priced in the middle of yield talk in the 7 7/8% area. Initial guidance was in the low-8% area.

Bookrunners were Morgan Stanley & Co. LLC, UBS Securities LLC, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., MUFG Securities Americas Inc., SG Americas Securities LLC, Barclays, ING Financial Markets LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Truist Securities Inc., BMO Capital Markets Corp., Santander US Capital Markets LLC and KeyBanc Capital Markets Inc.

The Santa Ana, Calif.-based provider of security services plans to use the proceeds, including the incremental proceeds resulting from the $500 million upsize of the deal, along with cash on hand, to repurchase a portion of Allied Universal Holdco LLC/Allied Universal Finance Corp. 6 5/8% senior secured notes due July 2026.

Issuer:	Allied Universal Holdco LLC
Amount:	$1 billion, increased from $500 million
Issue:	Senior secured notes
Maturity:	Feb. 15, 2031
Bookrunners:	Morgan Stanley & Co. LLC, UBS Securities LLC, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., MUFG Securities Americas Inc., SG Americas Securities LLC, Barclays, ING Financial Markets LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Truist Securities Inc., BMO Capital Markets Corp., Santander US Capital Markets LLC and KeyBanc Capital Markets Inc.
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Spread:	400 bps
First call:	Feb. 15, 2027 at 103.938
Trade date:	Feb. 2
Settlement date:	Feb. 16
Ratings:	Moody’s: B3
	S&P: B
Distribution:	Rule 144A for life and Regulations S
Price talk:	7 7/8% area
Marketing:	Roadshow

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