McLaren launches $620 million five-year secured notes to yield 7½%; pricing Thursday

By Paul A. Harris

Portland, Ore., July 22 – McLaren Automotive launched its $620 million offering of five-year senior secured notes (Caa1/CCC+/B) at 7½%, according to market sources.

The deal, which is heard to be playing to a very strong order book, launched 12.5 basis points tighter than price talk in the 7¾% area. Initial guidance was in the low 8% area.

The offering is set to price later on Thursday.

Global coordinator and physical bookrunner Goldman Sachs will bill and deliver. HSBC is also a global coordinator and physical bookrunner. National Bank of Bahrain is a joint bookrunner.

The Rule 144A and Regulation S notes become callable after two years at par plus 50% of the coupon.

The issuing entity will be McLaren Finance plc.

The Woking, England-based high performance auto manufacturer plans to use the proceeds to refinance its senior secured notes due in 2022 and its super senior revolver, and to put cash on its balance sheet.

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