By Paul A. Harris
Portland, Ore., July 26 – Nesco Holdings I, Inc. and Investment Corp. IV priced a $475 million issue of five-year senior secured second-lien notes at par to yield 10% on Friday, according to a market source.
The yield printed in the middle of yield talk in the 10% area.
Talk widened significantly from initial guidance in the 9% area. There were also covenant changes.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Fifth Third Bank were the joint bookrunners.
Proceeds, together with $200 million of equity and proceeds from bank debt, will be used to finance the business combination of Nesco Holdings I and Investment Corp. IV into Capital Investment Merger Sub 2, LLC, a subsidiary of Capital Investment Corp.
Nesco is a Fort Wayne, Ind.-based supplier of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications and rail markets.
| Issuer: | Nesco Holdings I, Inc. and Capital Investment Corp. IV, to be combined into Capital Investment Merger Sub 2, LLC
|
| Amount: | $475 million
|
| Tenor: | Five years
|
| Securities: | Senior secured second-lien notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Fifth Third Bank
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Call protection: | Two years
|
| Trade date: | July 26
|
| Ratings: | Moody's: Caa1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10% area
|
| 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.
