Published on 1/29/2020 in the Prospect News High Yield Daily.
New Issue: Allied Universal prices $540 million tap of 6 5/8% notes due 2026 at 105.75
By Paul A. Harris
Portland, Ore., Jan. 29 – Allied Universal Holdco LLC and Allied Universal Finance Corp. priced a $540 million tack-on to the UNSEAM 6 5/8% senior secured notes due July 15, 2026 (B3/B-) at 105.75 with a 5.16% yield to worst in a Wednesday drive-by, according to market sources.
The issue price came at the rich end of the 105.25 to 105.75 price talk.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, SG CIB, Barclays, RBC Capital Markets LLC, Goldman Sachs & Co. LLC, BofA Securities Inc., BMO Capital Markets Corp. and Wells Fargo Securities LLC.
The Conshohocken, Pa.-based facilities services provider plans to use the proceeds, together with cash on hand, to pay off its ABL facility, which will remain available for future borrowings.
| Issuer: | UNSEAM
|
| Amount: | $540 million
|
| Maturity: | July 15, 2026
|
| Security description: | Tack-on to senior secured notes due July 15, 2026
|
| Left lead bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, SG CIB, Barclays, RBC Capital Markets LLC, Goldman Sachs & Co. LLC, BofA Securities Inc., BMO Capital Markets Corp. and Wells Fargo Securities LLC
|
| Co-managers: | ING Financial Markets LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc. and Raymond James & Associates Inc.
|
| Coupon: | 6 5/8%
|
| Price: | 105.75
|
| Yield to worst: | 5.16%
|
| Spread: | 373 bps
|
| First call: | July 15, 2022 at 103.313
|
| Trade date: | Jan. 29
|
| Settlement date: | Feb. 3
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| Ratings: | Moody's: B3
|
| S&P: B-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 105.25 to 105.75
|
| Marketing: | Quick to market
|
| Original issue: | $1 billion priced in June 2019
|
| Total issue size: | $1.54 billion
|
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