By Paul Deckelman
New York, Oct. 27 – goeasy Ltd. was heard by high-yield syndicate sources to have priced an upsized $325 million offering of five-year senior notes (Ba3/BB-) at par to yield 7 7/8% on Friday.
The offering was enlarged from an originally announced $300 million.
The notes priced in line with revised price talk released Friday morning of a yield at 7 7/8%, which had tightened from the 8% to 8¼% price talk that had circulated in the market on Thursday. That earlier price talk, in turn, had widened from initial guidance envisioning a yield in the mid-to-high 7% area – where the notes ultimately did price.
The Rule 144A and Regulation S for life offering was brought to market via left bookrunner Wells Fargo Securities LLC, along with joint bookrunner BMO Capital Markets Corp.
The bonds will come with two years of call protection, as well as an equity clawback feature and a 101% change-of-control put.
goeasy, a Mississauga, Ont.-based full-service provider of goods and alternative financial services, plans to use the new-deal proceeds to repay credit facility debt and for general corporate purposes.
| Issuer: | goeasy Ltd.
|
| Amount: | $325 million, upsized from an originally announced $300 million
|
| Security: | Senior notes
|
| Maturity: | Nov. 1, 2022
|
| Bookrunners: | Wells Fargo Securities LLC (left) and BMO Capital Markets Corp. (joint)
|
| Co-manager: | CIBC World Markets Corp.
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Call: | Make-whole call until Nov. 1, 2019; callable on or after Nov. 1, 2019 at 103.938, on or after Nov. 1, 2020 at 101.969, and finally callable at par on or after Nov. 1, 2021
|
| Equity clawback: | Until Nov. 1, 2019, for up to 35% of the issue, at 107.875
|
| Change-of-control put: | At 101%
|
| Trade date: | Oct. 27
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| Settlement date: | Nov. 1 (T+3)
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| Ratings: | Moody’s: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7 7/8%, revised from 8% to 8¼%; preliminary guidance was in the mid-to-high 7% area
|
| Marketing: | Roadshow
|
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