New Issue: DJO prices downsized $1.02 billion secured notes due 2021 at par to yield 8 1/8%

By Paul A. Harris

Portland, Ore., April 23 – DJO Global Inc. priced a downsized $1,015,000,000 issue of senior secured notes due June 15, 2021 (Caa1/CCC+) at par to yield 8 1/8% on Thursday, according to a syndicate source.

The deal was downsized from $1,045,000,000, with $30 million of proceeds shifted to a concurrent bank loan.

The yield printed 12.5 basis points below the tight end of the 8¼% to 8½% yield talk.

Credit Suisse Securities (USA) LLC was the lead left bookrunner. Wells Fargo Securities LLC, Goldman Sachs & Co., UBS Investment Bank, RBC Capital Markets, Macquarie and Natixis were the joint bookrunners.

There were covenant changes reflecting the shift of proceeds to the loan from the bonds.

The San Diego-based medical device maker plans to use the proceeds to refinance bank and bond debt.

Issuers:	DJO Finco Inc., DJO Finance LLC, DJO Finance Corp.
Amount:	$1,015,000,000, downsized from $1,045,000,000
Maturity:	June 15, 2021
Securities:	Second-lien notes
Lead left bookrunner:	Credit Suisse Securities (USA) LLC
Joint bookrunners:	Wells Fargo Securities LLC, Goldman Sachs & Co., UBS Investment Bank, RBC Capital Markets, Macquarie, Natixis
Coupon:	8 1/8%
Price:	Par
Yield:	8 1/8%
Spread:	652 bps
First call:	June 15, 2018 at 104.063
Trade date:	April 23
Settlement date:	May 7
Ratings:	Moody's: Caa1
	Standard & Poor's CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	8¼% to 8½%
Marketing:	Roadshow

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