Forgital talks $505 million seven-year secured notes at 7½% area yield; pricing Friday

By Paul A. Harris

Portland, Ore., Aug. 1 – Forgital Group talked its $505 million offering of seven-year senior secured notes to yield in the 7½% area, according to a syndicate source.

Books were scheduled to close on Thursday, and the Rule 144A and Regulation S deal is set to price on Friday.

Credit Suisse Securities (USA) LLC is the left lead bookrunner. Barclays, UBS Investment Bank, BNP Paribas, Goldman Sachs & Co., NWM and SG CIB are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes also feature a three-year 40% equity clawback and a 101% poison put.

The issuing entities will be F-Brasile SpA and F-Brasile US LLC.

Proceeds will be used to support the leveraged buyout of the Vicenza, Italy-based manufacturing concern by the Carlyle Group.

Forgital focuses on forged components for the aerospace market.

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