By Paul A. Harris
Portland, Ore., April 1 – Cetera Financial Group priced a $400 million issue of eight-year senior notes (Caa2/CCC) at par to yield 7½% on Thursday, according to market sources.
The yield printed 12.5 basis points inside of yield talk in the 7¾% area. Initial guidance was in the high 7% area.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were UBS Securities LLC, Morgan Stanley & Co. LLC, Truist Securities Inc. and Deutsche Bank Securities Inc.
The notes were sold via Aretec Escrow Issuer Inc.
The El Segundo, Calif.-based service provider to a family of independent broker-dealers plans to use the proceeds plus borrowings under its first-lien credit facilities and cash from its balance sheet to finance the acquisition of assets from Voya Financial Advisors Inc. and pay off Cetera’s second-lien credit facility. Any remaining proceeds would be used for general corporate purposes, which may include debt repayment, capital expenditures, working capital and potential acquisitions and strategic transactions.
| Issuer: | Aretec Escrow Issuer Inc.
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| Amount: | $400 million
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| Maturity: | April 1, 2029
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| Securities: | Senior notes
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | UBS Securities LLC, Morgan Stanley & Co. LLC, Truist Securities Inc. and Deutsche Bank Securities Inc.
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| Coupon: | 7½%
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| Price: | Par
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| Yield: | 7½%
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| Spread: | 599 bps
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| First call: | April 1, 2024 at 103.75
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| Special call: | 10% at 103 during non-call period
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| Trade date: | April 1
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| Settlement date: | April 8
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| Ratings: | Moody's: Caa2
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| S&P: CCC
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| Distribution: | Rule144A and Regulation S for life
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| Price talk: | 7¾% area
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| Marketing: | Roadshow
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