By Paul A. Harris
Portland, Ore., May 21 - Brakes Bros Ltd. priced a two-part offering of senior secured notes due Dec. 15, 2018 (expected ratings B3/B-) on Wednesday, according to a market source.
The deal included a £257 million add-on to the Brakes Capital 7 1/8% senior secured notes due Dec. 15, 2018 which priced at 101.5 to yield 6.735%. The reoffer price came at the rich end of the 101.25 to 101.5 price talk. The original £200 million issue priced at par on Nov. 20, 2013.
The deal also included €150 million of new senior secured floating-rate notes, which priced at par to yield Euribor plus 500 basis points. The reoffer price came on top of price talk. The spread came at the wide end of the Euribor plus 475 bps to 500 bps spread talk.
Joint bookrunner Barclays will bill and deliver. HSBC and JPMorgan were also joint bookrunners.
The Ashford, England-based foodservice distributor plans to use the proceeds to repay bank debt.
| Issuer: | Brakes Capital (Brakes Bros Ltd.)
|
| Maturity: | Dec. 15, 2018
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| Bookrunners: | Barclays (bill and deliver), HSBC, JP Morgan
|
| Trade date: | May 21
|
| Settlement date: | May 21 with accrued interest
|
| Expected ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Add-on
|
| Face amount: | £257 million
|
| Proceeds: | £261 million
|
| Security description: | Add-on to 7 1/8% senior secured notes due Dec. 15, 2017
|
| Coupon: | 7 1/8%
|
| Price: | 101.5
|
| Yield to maturity: | 6.735%
|
| Spread: | 525 bps
|
| First call: | Dec. 15, 2015 at 103.563
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| Price talk: | 101.25 to 101.5
|
|
|
| Floating-rate notes
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| Amount: | €150 million
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Euribor plus 500 bps
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| Price: | Par
|
| Yield: | Euribor plus 500 bps
|
| First call: | Dec. 15, 2015 at 101
|
| Price talk: | Euribor plus 475 to 500 bps at par
|
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