By Paul A. Harris
Portland, Ore., April 13 – CGG Holding (US) Inc. priced $650 million equivalent of five-year senior secured notes (B2/B) in two tranches on Friday, according to market sources.
The dollar-denominated tranche featured $300 million of notes that priced at par to yield 9%. The yield printed 12.5 bps inside of yield talk in the 9¼% area. Initial guidance was in the high 9% area.
The euro-denominated tranche featured €280 million of notes that priced at par to yield 7 7/8%. The yield printed 25 bps inside of yield talk in the 8¼% area. Initial guidance was in the high 8% area to 9%.
Near the time that order books were scheduled to close on Friday, they were heard to contain $2 billion and €2 billion of demand, respectively, a trader said.
Global coordinator Credit Suisse will bill and deliver for the dollar-denominated notes. Global coordinator JPMorgan will bill and deliver for the euro-denominated notes.
Proceeds will be used to refinance the company’s existing first-lien senior secured notes.
CGG Holding is a subsidiary of CGG SA, a Paris-based geoscience company.
| Issuer: | CGG Holding (U.S.) Inc.
|
| Amount: | $650 million equivalent
|
| Maturity: | May 1, 2023
|
| Securities: | Senior secured notes
|
| Joint global coordinators: | Credit Suisse, JPMorgan
|
| Trade date: | April 13
|
| Settlement date: | April 24
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Dollar-denominated notes
|
| Amount: | $300 million
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 632 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until May 1, 2020, then callable at 104.5
|
| Equity clawback: | 35% at 109 until May 1, 2020
|
| Price talk: | 9¼% area
|
| Bill and deliver: | Credit Suisse
|
|
|
| Euro-denominated notes
|
| Amount: | €280 million
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 796 bps
|
| First call: | Make-whole call at Bunds plus 50 bps until May 1, 2020, then callable at 103.398
|
| Equity clawback: | 35% at 107.875 until May 1, 2020
|
| Price talk: | 8¼% area
|
| Bill and deliver: | JPMorgan
|
© 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.
