By Paul A. Harris
Portland, Ore., June 25 – Ambac Financial Group, Inc. priced a downsized $1.175 billion issue of Sitka Holdings, LLC non-rated five-year senior secured floating-rate notes with a 450 basis points spread to Libor atop a 0.75% Libor floor at 99 on Friday, according to market sources.
The issue size decreased from $1.19 billion.
The spread and floor came on top of talk. The price came at the rich end of the 98 to 99 price talk.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included Odeon, BNY Mellon Capital Markets LLC and JMP Securities LLC.
The New York City-based financial services holding company plans to use the proceeds to partially redeem $1.625 billion of the outstanding Ambac LSNI, LLC Libor plus 500 bps tier 1 insured secured notes due 2023, and the secured notes issued by Ambac Assurance Corp. concurrently with the issuance of the tier 1 notes. The remaining balance of the tier 1 notes will be redeemed utilizing other available sources of liquidity.
| Issuer: | Sitka Holdings, LLC
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| Amount: | $1.175 billion, decreased from $1.19 billion
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| Maturity: | July 6, 2026
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| Securities: | Senior secured floating-rate notes
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| Bookrunners: | J.P. Morgan Securities LLC, Odeon, BNY Mellon Capital Markets LLC and JMP Securities LLC
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| Coupon: | Libor plus 450 bps
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| Libor floor: | 0.75%
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| Price: | 99
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| Call protection: | One year
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| Trade date: | June 25
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| Settlement date: | July 6
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| Rating: | Non-rated
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | Libor plus 450 bps, 75 bps Libor floor, at 98 to 99
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