By Paul A. Harris
Portland, Ore., June 6 – KIRS Group priced £800 million equivalent of six-year senior secured notes (B3//B-) in a restructured deal on Tuesday, according to a syndicate source.
The deal included £400 million of notes, which priced at par to yield 8 3/8%. The yield printed at the tight end of yield talk in the 8½%.
In addition the company priced $520 million of notes at par to yield 8 5/8%, at the tight end of yield talk in the 8¾% area.
A restructuring saw the withdrawal of a proposed floating-rate notes tranche. The tenor of the remaining fixed-rate notes was increased to six years from five years. Call protection was increased to three years from two years.
Global coordinator BofA Merrill Lynch was the physical bookrunner. Barclays, Credit Suisse, Goldman Sachs and KKR are bookrunners.
The Kent, England-based insurance group plans to use the proceeds to refinance debt, as well as to finance the acquisitions of Ryan Direct Group1 and Chase Templeton, and to overfund cash on the balance sheet.
| Issuer: | KIRS Midco 3 plc
|
| Amount: | £800 million equivalent
|
| Maturity: | July 15, 2023, maturity extended to six years from five years
|
| Securities: | Senior secured notes
|
| Global coordinator: | BofA Merrill Lynch
|
| Physical bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Barclays, Credit Suisse, Goldman Sachs, KKR
|
| Trade date: | June 6
|
| Settlement date: | June 20
|
| Ratings: | Moody's: B3
|
| Fitch: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Sterling-denominated notes
|
| Amount: | £400 million
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Spread: | 781 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until July 15, 2020, then callable at 104.188 (call protection extended to three years from two years)
|
| Equity clawback: | 40% at 108.375 until July 15, 2020
|
| Price talk: | 8½% area
|
|
|
| Dollar-denominated notes
|
| Amount: | $520 million
|
| Coupon: | 8 5/8%
|
| Price: | Par
|
| Yield: | 8 5/8%
|
| Spread: | 677 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until July 15, 2020, then callable at 104.313 (call protection extended to three years from two years)
|
| Equity clawback: | 40% at 108.625 until July 15, 2020
|
| Price talk: | 8¾% area
|
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