By Paul A. Harris
Portland, Ore., June 24 – Ardonagh Midco 2 plc priced a $500 million issue of 6.5-year senior PIK toggle notes (//CCC) at 99 with an 11½% cash coupon that steps up to 12¾% for PIK coupon payments.
The yield is 11.742%.
BofA Securities Inc. is the left joint global coordinator, and Barclays and Deutsche Bank are joint global coordinators. Joint bookrunners were Goldman Sachs and NatWest.
The coupon and price came on top of talk. The PIK premium came at the wide end of the 100 basis points to 125 bps PIK premium talk.
The notes were trading at a premium to the new issue price late Thursday afternoon, according to a New York-based bond trader, who spotted them at 99½ bid, par offered.
The London-based insurance brokerage plans to use the proceed, together with certain proceeds from its term facility, to fund the redemption of its existing notes, as well as to repay drawn amounts under its revolver, to fund the Arachas, Bravo and Bennetts acquisitions and for general corporate purposes.
| Issuer: | Ardonagh Midco 2 plc
|
| Amount: | $500 million
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| Maturity: | Jan. 15, 2027
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| Securities: | Senior PIK toggle notes
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| Left joint global coordinator: | BofA Securities Inc.
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| Joint global coordinators: | Barclays and Deutsche Bank
|
| Joint bookrunners: | Goldman Sachs and NatWest
|
| Cash coupon: | 11½%
|
| PIK coupon: | 12¾%
|
| Price: | 99
|
| Yield: | 11.724%
|
| Cal protection: | Two years
|
| Trade date: | June 25
|
| Settlement date: | July 14
|
| Rating: | Fitch: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 11½% cash coupon, 100-125 bps PIK step up at 99
|
| Marketing: | Roadshow
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