Published on 7/20/2020 in the Prospect News High Yield Daily.
New Issue: Wyndham Destinations prices upsized $650 million 6 5/8% six-year notes at par
By Paul A. Harris
Portland, Ore., July 20 – Wyndham Destinations, Inc. priced an upsized $650 million issue of six-year senior secured bullet notes (Ba3/BB-/BB+) at par to yield 6 5/8% in a Monday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of yield talk in the 6¾% area. Initial talk was in the 7% area.
The deal was heard to be playing to $1.1 billion of orders at around noon ET on Monday, a trader said.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Deutsche Bank Securities Inc., J.P. Morgan Securities LC, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, MUFG, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.
The Orlando-based timeshare company plans to use the proceeds for general corporate purposes, which may include debt repayment under its secured revolver and future repayment of its 5 5/8% secured notes due March 2021.
| Issuer: | Wyndham Destinations, Inc.
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| Amount: | $650 million, increased from $500 million
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| Maturity: | July 31, 2026
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| Securities: | Senior secured notes
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LC, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, MUFG, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Comerica Securities Inc. and U.S. Bancorp Investments Inc.
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| Coupon: | 6 5/8%
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| Price: | Par
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| Yield: | 6 5/8%
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| Spread: | 624 bps
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| Call protection: | Par call after April 30, 2026, otherwise non-callable
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| Trade date: | July 20
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| Settlement date: | July 24
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| Ratings: | Moody's: Ba3
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| S&P: BB-
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6¾% area
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| Marketing: | Drive-by
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