By Paul A. Harris
Portland, Ore., Feb. 15 SGL International A/S announced in a Thursday press release that its special purpose vehicle, BidCo, priced a 750 million issue of three-month Euribor plus 675 basis points five-year senior secured floating-rate notes (B/B+) at 98.
The issue size came at the high end of the 725 million to 750 million projected range, according to market sources.
The spread came at the tight end of the 675 bps to 700 bps spread talk. The issue price came on top of price talk, they added.
The issuer declined to go forward with an anticipated dollar-denominated fixed-rate tranche of the secured notes, market sources said.
The transaction was well received by the market and generated strong demand from both existing and new investors, ultimately resulting in an oversubscribed book, the issuer stated in the press release.
Pareto Securities AB was the sole global coordinator and bookrunner.
Proceeds plus sponsor equity will be used to help fund the buyout of Copenhagen-based freight logistics company Scan Global Logistics by CVC Capital Partners.
There was no committed financing for the buyout, which hinged on the successful placement of the notes, market sources said.
| Issuer: | BidCo
|
| Amount: | 750 million
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| Issue: | Senior secured floating-rate notes
|
| Tenor: | Five years
|
| Sole bookrunner: | Pareto Securities AB (global coordinator)
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| Coupon: | Three-month Euribor plus 675 bps
|
| Price: | 98
|
| Call protection: | Two years
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| Trade date: | Feb. 14
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| Settlement date: | March 2
|
| Ratings: | S&P: B
|
| Fitch: B+
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| Price talk: | Three-month Euribor plus 675 bps to 700 bps at 98
|
| Legal adviser: | Roschier Advokatbyra AB
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