By Paul A. Harris
Portland, Ore., Dec. 15 – Skillz Inc. priced a $300 million issue of 10¼% five-year first-lien secured notes (B3/B-) at 95 to yield 11.598% on Wednesday, according to market sources.
The coupon came on top of coupon talk. However, the issue price came 2 points cheap to discount talk of 97. Initial guidance had the deal pricing at 97 to yield in the 11% area.
The deal, with which the San Francisco-based game competition platform made its debut in the high-yield bond market, also underwent covenant changes that primarily bear upon how the issuer may disburse cash and incur additional debt.
Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were Goldman Sachs & Co. LLC, BofA Securities Inc., Jefferies LLC, RBC Capital Markets LLC and SVB Leerink LLC.
Proceeds will be used for general corporate purposes.
| Issuer: | Skillz Inc.
|
| Amount: | $300 million
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| Issue: | First-lien secured notes
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| Maturity: | Dec. 15, 2026
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| Left bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc., Jefferies LLC, RBC Capital Markets LLC and SVB Leerink LLC
|
| Coupon: | 10¼%
|
| Price: | 95
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| Yield: | 11.598%
|
| Spread: | 1,033 bps
|
| First call: | Dec. 15, 2023 at 107.688
|
| Trade date: | Dec. 15
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| Settlement date: | Dec. 20
|
| Ratings: | Moody's: B3
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| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10¼% coupon at 97
|
| Marketing: | Roadshow
|
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