By Paul A. Harris
Portland, Ore., Jan. 11 – Global Auto Holdings Ltd. priced $1.05 billion of senior notes (B2/B+) in two tranches on Thursday, according to market sources.
The deal included a $525 million tranche of five-year notes that priced at par to yield 8 3/8% and a $525 million tranche of eight-year notes that priced at par to yield 8¾%.
Both tranches priced at the wide ends of price talk: 8 1/8% to 8 3/8% on the five-year notes and 8½% to 8¾% on the eight-year notes. Official talk came on top of early guidance.
The deal, with which Global Auto made its debut in the high-yield primary market, was playing to $1.3 billion of demand prior to the release of the official talk on Thursday morning, according to a trader, who added that the deal came into the market earlier in the week with no reverse inquiry.
The U.K.-based designer and manufacturer of automobiles and related components plans to use the proceeds to refinance debt.
| Issuer: | Global Auto Holdings Ltd.
|
| Amount: | $1.05 billion
|
| Issue: | Senior notes
|
| Lead: | JPMorgan
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 22
|
| Ratings: | Moody’s: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Five-year notes
|
| Amount: | $525 million
|
| Maturity: | Jan. 15, 2029
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Call protection: | Two years
|
| Price talk: | 8 1/8% to 8 3/8%
|
|
|
| Eight-year notes
|
| Amount: | $525 million
|
| Maturity: | Jan. 15, 2032
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Call protection: | Three years
|
| Price talk: | 8½% to 8¾%
|
|
|
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