Chicago, Oct. 5 – LSF11 A5 Holdco LLC sold $350 million of 6 5/8% eight-year senior notes (Caa1/B-) at par, according to a market source.
The notes priced at the low end of yield talk in the 6¾% area.
Official talk came tight to initial guidance in the high-6% area.
The notes have a make-whole call at Treasuries plus 50 basis points until Oct. 15, 2024. After that date, the notes are callable with premiums that step down annually: 103.3125, then 101.65625 and then par starting Oct. 15, 2026.
The deal, backing the buyout of AOC Resins, priced on Thursday.
Left bookrunner RBC Capital Markets LLC was handling billing and delivery. BofA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are the joint bookrunners for the Rule 144A and Regulation S for life offering.
Proceeds will be used to fund the acquisition of AOC and refinance existing credit facilities. AOC is a Collierville, Tenn.-based producer of specialty resins. It is being purchased by Lone Star Funds from CVC Capital Partners.
| Issuer: | LSF11 A5 Holdco LLC
|
| Issue: | Senior notes
|
| Amount: | $350 million
|
| Maturity: | Oct. 15, 2029
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| Bookrunners: | RBC Capital Markets LLC, BofA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | Treasuries plus 524 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2024; 103.3125 starting in 2024; 101.65625 starting in 2025; par starting Oct. 15, 2026
|
| Equity clawback: | Up to 40% at 106.625
|
| Change of control: | At 101
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| Trade date: | Sept. 30
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| Settlement date: | Oct. 13
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| Ratings: | Moody’s: Caa1
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% area; tightened from initial guidance in the high-6% area
|
| Cusips: | 50221DAA7, U5463XAA1
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