Brand Energy, Brand Industrial Services to price $300 million tap of 8½% notes on Thursday

By Paul A. Harris

Portland, Ore., Oct. 26 – Brand Energy and Brand Industrial Services, Inc. plan to price a $300 million add-on to the Brand Industrial Services 8½% senior notes due July 15, 2025 (existing ratings Caa2/CCC+) in a quick-to-market Thursday trade, following a late-morning conference call with investors, according to a market source.

Barclays is the left bookrunner for the Rule 144A and Regulation S for life add-on. Goldman Sachs & Co., Natixis, ING, SG CIB, Credit Agricole CIB and SMBC Nikko are the joint bookrunners.

The notes become callable at 106.375 on July 15, 2020 and feature 40% equity clawback at 108.5 until July 15, 2020 and a 101% poison put.

The Kennesaw, Ga.-based provider of specialized services to energy, industrial and infrastructure customers plans to use the proceeds to pay off its revolving credit facility, as well as to partially repay amounts outstanding under its AR financing facility, and for general corporate purposes, including potential acquisitions.

The original $700 million issue priced at par on June 16, 2017.

The add-on notes will become fungible with original notes.

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