By Paul A. Harris
St. Louis, Oct. 7 - Brickman Group Holdings, Inc. priced a downsized $250 million issue of eight-year senior notes (B3/CCC+/) at par to yield 9 1/8% on Thursday, according to an informed source.
The yield printed at the tight end of the 9¼% area price talk.
The issue was downsized from $300 million, with $50 million being shifted to the bank loan.
The first call premium was increased to par plus ¾ of the coupon from par to ½ of the coupon.
Bank of America Merrill Lynch and Barclays Capital Inc. were the joint bookrunners.
Co-managers were Citigroup Global Markets Inc., Jefferies & Co. and Morgan Stanley & Co. Inc.
Proceeds, along with proceeds from a new credit facility, will be used to redeem the company's outstanding senior subordinated notes and to make a cash distribution to the equity holders.
Brickman is a Gaithersburg, Md.-based commercial landscaping company.
| Issuer: | Brickman Group Holdings, Inc.
|
| Amount: | $250 million (decreased from $300 million, with $50 million shifted to the bank loan)
|
| Maturity: | Nov. 1, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc.
|
| Co-managers: | Citigroup Global Markets Inc., Jefferies & Co., Morgan Stanley & Co. Inc.
|
| Coupon: | 9 1/8%
|
| Price: | Par
|
| Yield: | 9 1/8%
|
| Spread: | 712 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 1 2013, then callable at 106.844, 104.563, 102.281, par on and after Nov. 1, 2016
|
| Equity clawback: | 35% at 109.125 until Nov. 1, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 7
|
| Settlement date: | Oct. 14
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 9¼% area
|
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