CDW whispers $500 million eight-year senior notes with 5½% yield; pricing Thursday

By Paul A. Harris

Portland, Ore., Feb. 23 – CDW Corp. gave initial guidance of 5½% on its proposed public offering of $500 million eight-year senior notes, according to a bond trader in New York.

The deal is expected to price on Thursday.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, Barclays, Goldman Sachs & Co. and RBC Capital Markets LLC are the joint bookrunners.

U.S. Bancorp Investments Inc., MUFG, Capital One Securities Inc. and HSBC Securities (USA) Inc. are the co-managers.

The notes feature three years of call protection and a three-year 40% equity clawback.

The issuing entities will be wholly owned subsidiaries CDW LLC and CDW Finance Corp.

The Lincolnshire, Ill.-based company plans to use the proceeds, together with cash on hand and a draw on its asset-based revolving credit facility, to fund the redemption of all $600 million of its outstanding 6% senior notes due 2022.

CDW is a technology solutions provider to business, government, education and health care.

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