Vertiv talks $850 million seven-year secured notes at 4¼% area yield; pricing Thursday

By Paul A. Harris

Portland, Ore., Oct. 14 – Vertiv Group Corp. talked its $850 million offering of seven-year senior secured notes (B1/BB-) to yield in the 4¼% area, in line with initial guidance in the low-to-mid 4% area, market sources said.

Books close at 1 p.m. ET on Thursday, and the deal is set to price thereafter.

Citigroup Global Markets Inc. is the left bookrunner. J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners. ING Financial Markets LLC, PNC Capital Markets LLC and BMO Capital Markets Corp. are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The Columbus, Ohio-based provider of network infrastructure services plans to use the proceeds plus cash on hand to finance the cash portion of its pending acquisition of E&I Engineering Ireland Ltd. and its affiliate Powerbar Gulf LLC.

The notes are covered by a mandatory call in the event that the acquisition does not close.

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