By Paul A. Harris
Portland, Ore., April 12 – Drax Group Co. priced a $300 million issue of 7.5-year senior secured notes (BB+/BB+) at par to yield 6 5/8% on Thursday, according to a market source.
The yield printed at the tight end of yield talk in the 6¾% area.
Global coordinator Barclays will bill and deliver. BofA Merrill Lynch was also a global coordinator. Deutsche Bank Securities Inc. was a joint bookrunner.
The Selby, England-based coal and biomass generator plans to use the proceeds to pay off its senior secured floating-rate notes due 2022 on or after May 1, 2018 and for cash overfunding.
| Issuer: | Drax Finco plc
|
| Amount: | $300 million
|
| Maturity: | Nov. 1, 2025
|
| Securities: | Senior secured notes
|
| Global coordinators: | Barclays (bill and deliver), BofA Merrill Lynch
|
| Joint bookrunner: | Deutsche Bank Securities Inc.
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 384 bps
|
| First call: | Callable after May 1, 2021 at 103.313
|
| Equity clawback: | 40% at 106.625 until May 1, 2021
|
| Trade date: | April 12
|
| Settlement date: | April 26
|
| Ratings: | S&P: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% area
|
| Marketing: | Roadshow
|
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