By Paul A. Harris
Portland, Ore., Oct. 7 – White Cap Buyer LLC priced a $640 million issue of eight-year senior notes (B2/B) at par to yield 6 7/8% on Wednesday, according to market sources.
The yield printed 12.5 basis points tighter than the 7% to 7¼% yield talk. Initial guidance was in the mid-to-high 7% area.
The deal was oversubscribed and came to market on the back of significant reverse inquiry, enabling the issuer to push down pricing, a bond trader said.
Deutsche Bank Securities Inc. was on the left of a syndicate of banks that also included Jefferies LLC, RBC Capital Markets Corp., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and Nomura Securities International Inc.
Proceeds will be used to support the acquisition of HD Supply Inc.’s Construction and Industrial business, which operates as White Cap, by Clayton, Dubilier & Rice.
White Cap is a Norcross, Ga.-based industrial distributor of specialty construction products.
| Issuer: | White Cap Buyer LLC
|
| Amount: | $640 million
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| Tenor: | Eight years
|
| Securities: | Senior notes
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| Bookrunners: | Deutsche Bank Securities Inc., Jefferies LLC, RBC Capital Markets Corp., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and Nomura Securities International Inc.
|
| Coupon: | 6 7/8%
|
| Price: | Par
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| Yield: | 6 7/8%
|
| Call protection: | Three years
|
| Trade date: | Oct. 7
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| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7% to 7¼%
|
| Marketing: | Roadshow
|
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