Brand Energy hikes talk on $700 million eight-year notes to 8½%, tweaks covenants; pricing Friday

By Paul A. Harris

Portland, Ore., June 16 – Brand Energy & Infrastructure Services, Inc. increased price talk on its $700 million offering of eight-year senior notes (CCC+) to 8½% from earlier talk in the 8% area, according to a market source.

Along with higher talk came investor friendly covenant changes, including an increase in the first call premium; the notes become callable after three years at par plus 75% of the coupon, up from 50%.

Other covenant changes saw debt incurrence and leverage restrictions tightened.

Books close at noon ET on Friday, and the Rule 144A and Regulation S for life offering is set to price thereafter. Earlier timing had order books scheduled to close on Thursday.

Barclays is the left bookrunner. Goldman Sachs & Co., Natixis, ING, SG CIB and Credit Agricole CIB are joint bookrunners.

In addition to the revised call premium mentioned above, the notes feature a three-year 40% equity clawback and a 101% poison put.

The Kennesaw, Ga.-based firm, a portfolio company of Clayton, Dubilier & Rice, plans to use the proceeds to finance the combination of Brand Energy and Safway Group (Badger Holding LLC).

Brand Energy provides specialized services to energy, industrial and infrastructure customers.

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