By Paul A. Harris
Portland, Ore., June 4 – David Lloyd Leisure priced two tranches of six-year senior secured notes (B3//B+) on Friday, according to a market source.
The issuance included a £645 million tranche of fixed-rate notes, which priced at par to yield 5½%. The yield printed at the tight end of the 5½% to 5¾% yield talk. Initial guidance was 5¾% to 6%.
The deal also included a €300 million tranche of Euribor plus 475 basis points floating-rate notes with no Euribor floor, which also priced at par. The spread came at the tight end of the 475 bps to 500 bps spread talk. The issue price came rich to the 99.5 price talk.
Bookrunner Barclays will bill and deliver.
TDR Capital is the sponsor of David Lloyd Leisure.
The notes were sold via Deuce FinCo.
The Hatfield, U.K.-based health club chain plans to use the proceeds to repay debt and for general corporate purposes, including working capital, capital expenditures and strategic acquisitions.
| Issuer: | Deuce FinCo
|
| Securities: | Senior secured notes
|
| Maturity: | June 15, 2027
|
| Bookrunner: | Barclays (bill and deliver)
|
| Trade date: | June 4
|
| Settlement date: | June 18
|
| Ratings: | Moody's: B3
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Fixed-rate notes
|
| Amount: | £645 million
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| First call: | June 15, 2023 at 102.75
|
| Price talk: | 5½% to 5¾%
|
|
|
| Floating-rate notes
|
| Amount: | €300 million
|
| Coupon: | Euribor plus 475 bps
|
| Euribor floor: | 0%
|
| Price: | Par
|
| Yield: | Euribor plus 475 bps
|
| First call: | June 15, 2022 at 101
|
| Price talk: | Euribor plus 475 to 500 bps, 0% Euribor floor at 99.5
|
|
|
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