Virtusa to sell $130 million tap of 7 1/8% notes due 2028 on Tuesday; initial talk 99 area

By Paul A. Harris

Portland, Ore., Feb. 7 – Austin HoldCo Inc., which does business as Virtusa Corp., plans to price a $130 million add-on to the Virtusa 7 1/8% senior notes due Dec. 15, 2028 (Caa2/CCC+) on Tuesday, according to market sources.

Initial price talk has the Rule 144A for life deal coming at an issue price in the 99 area, a trader said.

The deal was set to kick off on a Monday morning conference call with investors.

BofA Securities Inc. is the left bookrunner. Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Nomura Securities International Inc. are the joint bookrunners.

The notes become callable on Dec. 15, 2023 at 103.563. They feature a 40% equity clawback at 107.125 during the non-call period. They also feature a 101% poison put.

The Southborough, Mass.-based information technology services company plans to use the proceeds to fund a shareholder distribution.

The original $300 million issue priced in December 2020.

The add-on notes are to immediately become fungible with the original notes.

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