By Abigail W. Adams
Portland, Me., March 25 – ESAB Corp. priced an upsized $700 million offering of five-year senior notes (Ba1/BB+) at par with a coupon of 6¼% in a Monday drive-by, according to a market source.
Pricing came at the tight end of talk for a yield of 6¼% to 6½%. Early guidance was for a yield in the 6½% to 6¾% area.
The initial size of the offering was $600 million.
The notes are non-callable for two years.
Goldman Sachs & Co. LLC was lead left bookrunner for the Rule 144A and Regulation S offering.
BofA Securities Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Citizens JMP Securities LLC and Wells Fargo Securities LLC were also bookrunners.
Proceeds, together with cash on hand, will be used to repay outstanding borrowings under the company’s term loan A-3 facility.
ESAB is a North Bethesda, Md.-based industrial company.
| Issuer: | ESAB Corp.
|
| Amount: | $700 million
|
| Issue: | Senior notes
|
| Maturity: | April 15, 2029
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Citizens JMP Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | KeyBanc Capital Markets Inc., U.S. Bancorp Investments, Inc., HSBC Securities (USA) Inc., Scotia Capital (USA) Inc. and UniCredit Capital Markets LLC
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 199 bps
|
| First call: | April 15, 2026
|
| Trade date: | March 25
|
| Settlement date: | April 9
|
| Ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Yield of 6¼% to 6½%
|
| Marketing: | Drive-by
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
