By Paul A. Harris
Portland, Ore., Oct. 27 – Sherwood Financing plc priced three tranches of senior secured notes (B1/B+/BB-) on Wednesday related to the acquisition of Arrow Global Group Ltd. by TDR Capital, according to market sources.
The deal included:
• An upsized €640 million tranche of six-year floating-rate notes that priced with a 462.5 basis points spread to three-month Euribor, with no Euribor floor, at par. The tranche size increased from €610 million. The spread came at the tight end of spread talk in the 475 bps area (no Euribor floor). Initial talk was in the high 4% area to 5%;
• An upsized €400 million of five-year fixed-rate notes that priced at par to yield 4½%, tight to talk in the 4 5/8% area. Initial talk was in the high 4% area. The tranche size increased from €370 million; and
• A downsized £350 million tranche of five-year fixed-rate notes that priced at par to yield 6%, in the middle of yield talk in the 6% area. Initial talk was 6% to 6¼%. The tranche size decreased from £400 million.
Global coordinator and joint physical bookrunner Barclays will bill and deliver for the sterling-denominated tranche. Global coordinator and joint physical bookrunner JPMorgan will bill and deliver for the euro-denominated tranches. Goldman Sachs was also a global coordinator and joint physical bookrunner.
Proceeds will be used to repay the new revolver and refinance Arrow Global notes.
Sherwood is a special purpose vehicle related to the acquisition.
Arrow Global is a U.K.-based asset management company focused on the non-performing and non-core sectors.
| Issuer: | Sherwood Financing plc
|
| Securities: | Senior secured notes
|
| Joint physical bookrunners: | Barclays (bill and deliver on sterling-denominated notes), JPMorgan (bill and deliver on the euro-denominated notes) and Goldman Sachs Bank Europe SE
|
| Joint bookrunners: | BofA Securities, Citigroup, DNB Markets, HSBC, Lloyds Bank Corporate Markets and NatWest Markets
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 8
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Euro fixed-rate notes
|
| Amount: | €400 million, increased from €370 million
|
| Maturity: | Nov. 15, 2026
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 499 bps
|
| First call: | Nov. 15, 2023 at 102.25
|
| Price talk: | 4 5/8% area
|
|
|
| Euro floating-rate notes
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| Amount: | €640 million, increased from €610 million
|
| Maturity: | Nov. 15, 2027
|
| Coupon: | Euribor plus 462.5 bps
|
| Euribor floor: | 0%
|
| Price: | Par
|
| Yield: | Euribor plus 462.5 bps
|
| First call: | Nov. 15, 2022 at 101
|
| Price talk: | Euribor plus 475 bps, 0% Euribor floor
|
|
|
| Sterling fixed-rate notes
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| Amount: | £350 million, decreased from £400 million
|
| Maturity: | Nov. 15, 2026
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| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 528 bps
|
| First call: | Nov. 15, 2023 at 103
|
| Price talk: | 6% area
|
|
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