Published on 4/23/2021 in the Prospect News High Yield Daily.
New Issue: Wheel Pros prices $365 million eight-year notes at par to yield 6½%
By Paul A. Harris
Portland, Ore., April 23 – Wheel Pros, Inc. priced a $365 million issue of eight-year senior notes (Caa2/CCC) at par to yield 6½% on Friday, according to market sources.
A book stuffed with orders amounting to as much as six-times to seven-times the size of the offer enabled dealers to ratchet pricing tighter, a trader said.
The yield printed at the tight end of revised yield talk in the 6 5/8% area. Prior to revision the talk was 6¾% to 7%.
Deutsche Bank Securities Inc. was as the left of a syndicate of deal runners.
Proceeds will be used to fund the acquisition of the company by Fund Icon Partners III, a single-asset investment vehicle managed by Clearlake Capital Group as general partner, from Clearlake managed funds, and to refinance existing debt.
Closing is expected in the second quarter.
Wheel Pros is a Denver-based distributor of proprietary branded wheels and performance tires.
| Issuer: | Wheel Pros Escrow Issuer Corp., to be merged with and into Wheel Pros, Inc.
|
| Amount: | $365 million
|
| Maturity: | May 15, 2029
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Jefferies LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| First call: | Make-whole call at Treasuries plus 50 bps until May 15, 2024, then callable at 103.25
|
| Special call: | Issuer may redeem 10% of notes annually at 103 during non-call period
|
| Qualified IPO call: | All of the notes, but not less than all, at 106.5 until May 15, 2024
|
| Equity clawback: | Up to 40% at 106.5 until May 15, 2024
|
| Trade date: | April 23
|
| Settlement date: | May 7
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6 5/8% area, revised from 6¾% to 7%
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
