By Paul A. Harris
Portland, Ore., June 28 – Capital Services (CSVC Acquisition Corp.) priced a $515 million issue of eight-year senior secured notes (B3/B) at par to yield 7¾% on Wednesday, according to a syndicate source.
The yield printed on top of yield talk that was set in the 7¾% area.
UBS Investment Bank was the lead left bookrunner. Barclays Capital Inc. and Goldman Sachs & Co. were the joint bookrunners.
Proceeds, along with borrowings under an asset-based loan facility and letters of credit issued under the ABL, plus equity contributions will be used to fund the acquisition of international engineering, procurement and construction conglomerate Chicago Bridge & Iron Corp.’s Capital Services Group by Veritas Capital.
The New York-based private equity firm will pay $755 million for Capital Services. The company is based in The Woodlands, Texas and provides services as a maintenance and modification contractor for the nuclear power industry, industrial maintenance industry and federal, state and local governments in the areas of operations and maintenance support services, environmental engineering and remediation.
| Issuer: | CSVC Acquisition Corp.
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| Amount: | $515 million
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| Maturity: | June 15, 2025
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| Securities: | Senior secured notes
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| Lead left bookrunner: | UBS
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| Joint bookrunners: | Goldman Sachs, Barclays
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| Coupon | 7¾%
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| Price: | Par
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| Yield: | 7¾%
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| Spread: | 563.2 bps
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| Call: | Make-whole call until June 15, 2020, then callable at 103.875
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| Equity clawback: | 40% at 107.75 until June 15, 2020
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| Trade date: | June 28
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| Settlement date: | June 30
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| Ratings; | Moody’s: B3
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7¾% area
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| Marketing: | Roadshow
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