Published on 7/9/2020 in the Prospect News High Yield Daily.
New Issue: Allied Universal prices upsized $400 million tap of 6 5/8% notes at 104 to yield 5.497%
By Paul A. Harris
Portland, Ore., July 9 – Allied Universal Holdco LLC and Allied Universal Finance Corp. priced an upsized $400 million add-on to their 6 5/8% senior secured notes due July 15, 2026 (B3/B-) at 104 on Thursday, according to market sources.
The transaction renders a 5.497% yield to worst.
The issue size increased from $350 million.
The issue price came at the rich end of the 103.5 to 104 price talk. Initial price talk was 103.25 to 103.75.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners were Barclays, BMO Capital Markets Corp., BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SG CIB and Wells Fargo Securities LLC.
The Conshohocken, Pa.-based facilities services provider plans to use the proceeds for general corporate purposes.
| Issuers: | Allied Universal Holdco LLC and Allied Universal Finance Corp.
|
| Amount: | $400 million, increased from $350 million
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| Maturity: | July 15, 2026
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| Security description: | Add-on to 6 5/8% senior secured notes due July 15, 2026
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| Left lead bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Barclays, BMO Capital Markets Corp., BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, SG CIB and Wells Fargo Securities LLC
|
| Co-managers: | ING Financial Markets Inc., PNC Capital Markets LLC, Raymond James & Associates Inc. and U.S. Bancorp Investments Inc.
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| Coupon: | 6 5/8%
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| Price: | 104
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| Yield to worst: | 5.497%
|
| Spread: | 528 bps
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| First call: | July 15, 2022 at 103.313
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| Trade date: | July 9
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| Settlement date: | July 15
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| Ratings: | Moody's: B3
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 103.5 to 104
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| Marketing: | Roadshow
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| Original issue: | $1 billion priced in June 2019
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| Previous add-on: | $540 million priced in January 2020
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| Fungibility: | New Rule 144A add-on notes to become immediately fungible with existing notes
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| Total issue size: | $1.94 billion
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