By Paul A. Harris
Portland, Ore., Jan. 30 – UKG Inc. priced a $2.5 billion issue of seven-year senior secured notes (B2/B-/BB) at par to yield 6 7/8% on Tuesday, according to market sources.
The yield printed at the tight end of yield talk in the 7% area. Early guidance was in the low-7% area.
J.P. Morgan Securities LLC was the lead.
The deal was heard to be playing to $6.5 billion of demand on Tuesday morning, a trader said.
Proceeds plus a $4.89 billion term loan will be used to refinance the company’s first-lien term loans, to pay down a revolver draw and to fund cash to the balance sheet.
The issuer is a provider of human capital management solutions and is based in Weston, Fla., and Lowell, Mass.
Issuer: | UKG Inc.
|
Amount: | $2.5 billion
|
Issue: | Senior secured notes
|
Maturity: | Feb. 1, 2031
|
Lead: | J.P. Morgan Securities LLC
|
Coupon: | 6 7/8%
|
Price: | Par
|
Yield: | 6 7/8%
|
Spread: | 282 bps
|
First call: | Feb. 1, 2027 at 103.438
|
Trade date: | Jan. 30
|
Settlement date: | Feb. 9
|
Ratings: | Moody’s: B2
|
| S&P: B-
|
| Fitch: BB
|
Distribution: | Rule 144A and Regulation S for life
|
Price talk: | 7% area
|
Marketing: | Roadshow
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.