By Paul A. Harris
Portland, Ore., Nov. 28 – Algeco Global Finance plc priced €125 million of add-ons to both tranches of its senior secured notes due 2023 (existing ratings B2/B-/B+) on Wednesday, according to a market source.
The deal, which saw €15 million of proceeds shifted to the floating-rate tranche from the fixed-rate trance, featured a downsized €85 million add-on to the 6½% fixed-rate notes, which priced at 98.25 to yield 6.98%. The tranche size was decreased from €100 million. The reoffer price came in the middle of the 98 to 98.5 price talk.
Algeco Global also priced an upsized €40 million tranche of Euribor plus 625 basis points floating-rate notes at 98.5. The tranche size was increased from €25 million. The reoffer price came at the wide end of price talk, which had also been set at 98 to 98.5.
Goldman Sachs International was bookrunner.
Proceeds will be used to repay the €96 million outstanding under certain existing sale-leaseback agreements and for general corporate purposes.
Algeco is a London-based global business services provider focused on modular space, secure portable storage solutions and remote workforce accommodation management.
| Issuer: | Algeco Global Finance plc
|
| Amount: | €125 million
|
| Maturity: | Feb. 15, 2023
|
| Securities: | Add-ons to fixed-rate and floating-rate senior secured notes due Feb. 15, 2023
|
| Bookrunner: | Goldman Sachs International
|
| Trade date: | Nov. 28
|
| Expected ratings: | Moody's: B2
|
| S&P: B-
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Fixed-rate notes
|
| Amount: | €85 million, decreased from €100 million
|
| Coupon: | 6½%
|
| Price: | 98.25
|
| Yield to maturity: | 6.98%
|
| Spread: | 773 bps
|
| First call date: | Feb. 15, 2020
|
| Price talk: | 98 to 98.5
|
| Original issue: | €600 million priced at 97.921 to yield 7% on Feb. 6, 2018
|
| Total issue size: | €685 million
|
|
|
| Floating-rate notes
|
| Amount: | €40 million, increased from €25 million
|
| Coupon: | Euribor plus 625 bps
|
| Price: | 98.5
|
| First call date: | Feb. 15, 2019
|
| Price talk: | 98 to 98.5
|
| Original issue: | €150 million priced at 98 on Feb. 6, 2018
|
| Total issue size: | €190 million
|
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