Artera Services to market $740 million seven-year secured notes through Jan. 29 week

By Paul A. Harris

Portland, Ore., Jan. 24 – Artera Services, LLC plans to market a $740 million offering of seven-year senior secured first-priority notes through the week of Jan. 29, according to market sources.

An investor call is scheduled to get underway at 1 p.m. ET on Thursday.

Initial guidance has the deal coming in the 9% area, a trader said.

The Rule 144A and Regulation S for life notes become subject to an initial call after three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period. The notes feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

BofA Securities Inc., UBS Securities LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Jefferies LLC, Mizuho Securities USA Inc., MUFG Securities Americas Inc. and PNC Capital Markets LLC are the joint bookrunners.

The Atlanta-based infrastructure services provider plans to use the proceeds plus balance sheet cash, proceeds from a new term loan B, a sponsor first-lien PIK term loan and sponsor contribution to repay the original first-lien term loan and the existing second-lien term loan, to repay the receivables facility and to fully redeem the notes that are outstanding.

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