BidFair/Sotheby’s talks $550 million eight-year notes to yield 7˝%; books close Monday

By Paul A. Harris

Portland, Ore., Sept. 23 – A $550 million offering of eight-year senior secured notes (B1/B+) backing the merger of Sotheby's and BidFair Ltd. is talked to yield 7˝%, according to an informed source.

Books close at 2 p.m. ET on Monday, the source added.

Earlier talk had the deal coming to yield in the high 6% area, a bond trader said.

Joint bookrunner BNP Paribas Securities Corp. will bill and deliver. Goldman Sachs & Co. LLC is also a joint bookrunner.

The Rule 144A and Regulation S notes come with three years of call protection.

Proceeds, along with proceeds from a $550 million term loan B, will be used to fund the acquisition of Sotheby’s, a New York-based auction house, by BidFair, as well as to fund cash on the balance sheet and an equity contribution by BidFair.

The issuing entity will be BidFair MergeRight Inc., which will be merged with and into Sotheby’s.

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