Published on 2/10/2020 in the Prospect News High Yield Daily.
New Issue: Valvoline sells upsized $600 million 10-year notes at par to yield 4¼%
By Paul A. Harris
Portland, Ore., Feb. 10 – Valvoline Inc. priced an upsized $600 million issue of 10-year senior notes (Ba3/BB) at par to yield 4¼% in a Monday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed on top of final yield talk and on the tight end of earlier yield talk in the 4 3/8% area.
Morgan Stanley & Co. LLC was the lead left bookrunner. Joint bookrunners were Goldman Sachs & Co. LLC, BofA Securities Inc., Citigroup Global Markets Inc., Fifth Third Securities Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Deutsche Bank Securities Inc.
The Lexington, Ky.-based supplier of lubricants and automotive services plans to use the proceeds to redeem its 5½% notes due 2024, with any excess proceeds to be used for general corporate purposes, which may include acquisitions, debt repayment, working capital and capital expenditures.
| Issuer: | Valvoline Inc.
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | Feb. 15, 2030
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
|
| Joint bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc., Citigroup Global Markets Inc., Fifth Third Securities Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Deutsche Bank Securities Inc.
|
| Co-managers: | J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 270 bps
|
| First call: | Feb. 15, 2025 at 102.125
|
| Trade date: | Feb. 10
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| Settlement date: | Feb. 25
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| Ratings: | Moody's: Ba3
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| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4¼%, revised from 4 3/8% area
|
| Marketing: | Roadshow
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