By Paul A. Harris
Portland, Ore., Aug. 9 – Vericast Corp. priced an upsized $540 million issue of new five-year first-lien notes (Caa1/B-) at par to yield 11% on Monday, according to a syndicate source.
The issue size increased from $465 million.
The issue price and coupon came on top of talk.
Credit Suisse Securities (USA) LLC was at the left of a syndicate of deal managers and was a joint bookrunning manager with Jefferies LLC. Additional bookrunners were Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Macquarie Capital (USA) Inc. and Wells Fargo Securities LLC.
The new notes come in addition to a $733 million tranche of first-lien notes due 2026 that were issued in a debt exchange involving first-lien notes set to mature in 2022 and 2024.
The San Antonio-based marketing services company plans to use the proceeds to voluntarily prepay a portion of its amended and extended term loans and borrowings under its ABL facility, as well as to redeem its old notes due 2022, to the extent any are outstanding after the exchange offers.
| Issuer: | Vericast Merger Sub, Inc. to be merged with and into Vericast Corp.
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| Amount: | $540 million, increased from $465 million
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| Maturity: | Sept. 15, 2026
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| Securities: | First-lien notes
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| Joint bookrunning managers: | Credit Suisse Securities (USA) LLC and Jefferies LLC
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| Bookrunning managers: | Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Macquarie Capital (USA) Inc. and Wells Fargo Securities LLC
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| Coupon: | 11%
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| Price: | Par
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| Yield: | 11%
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| Spread: | 1,019 bps
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| First call: | Sept. 15, 2023 at 105.5
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| Trade date: | Aug. 9
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| Settlement date: | Aug. 23
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| Ratings: | Moody's: Caa1
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 11% coupon at par
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| Marketing: | Drive-by
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