Advanced Drainage driving by with $500 million eight-year senior notes; price talk 6½% area

By Paul A. Harris

Portland, Ore., June 2 – Advanced Drainage Systems Inc. plans to price a $500 million issue of eight-year senior notes (expected Ba2/confirmed B+) in a Thursday drive-by trailing a conference call with investors, according to market sources.

The deal is talked to yield in the 6½% area, inside of initial guidance in the high 6% area.

Books close at 12:30 p.m. ET on Thursday, and the deal is set to price thereafter.

Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. BofA Securities Inc., Barclays, PNC Capital Markets LLC, Fifth Third Securities Inc., BMO Capital Markets Corp. and HSBC Securities (USA) Inc. are the joint bookrunners.

UBS Securities LLC, Robert W. Baird & Co. Inc. and Loop Capital Markets LLC are the co-managers.

The Rule 144A and Regulation S for life notes come with three years of call protection.

The Hilliard, Ohio-based supplier of water management systems plans to use the proceeds to pay down its revolver and for general corporate purposes.

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