Direct ChassisLink hikes talk on $325 million seven-year secured notes to 10% area

By Paul A. Harris

Portland, Ore., June 13 – Direct ChassisLink, Inc. increased the price talk on its $325 million offering of seven-year senior secured second-lien notes (B3/BB-) to the 10% area, an informed source said on Monday.

Late last week the deal was talked to yield in the 9% area.

Initially the offering was in the market with guidance in the high 8% to 9% yield range, sources said.

Books close at noon ET Monday and the Rule 144A for life deal is set to price subsequently. Previously the offer had been expected to price last Friday.

Goldman Sachs & Co. is the left bookrunner. BNP Paribas Securities Corp. is the joint bookrunner.

The notes come with three years of call protection.

Proceeds, together with borrowings under the company’s ABL facility and equity investments, will be used to finance the acquisition of Direct ChassisLink by EQT Infrastructure II Fund, as well as to repay or redeem existing third-party debt of Direct ChassisLink and its subsidiaries.

The issuing entity will be Deck Chassis Acquisition Inc., which is to be merged with and into LJ Chassis Holdings, Inc., the parent of Direct ChassisLink, a Charlotte, N.C.-based provider of equipment and asset management services to the U.S. intermodal industry.

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