Published on 9/23/2021 in the Prospect News High Yield Daily.
New Issue: DexKo prices $665 million eight-year notes at par to yield 6 5/8%
By Paul A. Harris
Portland, Ore., Sept. 23 – DexKo Global Inc. priced a $665 million issue of eight-year senior notes (Caa1/CCC) at par to yield 6 5/8% on Thursday, according to market sources.
The yield printed at the tight end of yield talk in the 6¾% area. Initial guidance was in the high-6% area.
Deutsche Bank Securities Inc. was at the left of a syndicate of bookrunners that also included BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, RBC Capital Markets LLC, Barclays, BNP Paribas Securities Corp., CIBC World Markets Corp. and TD Securities (USA) LLC.
Proceeds will be used to fund Brookfield Business Partners’ acquisition of DexKo Global.
DexKo Global is a Novi, Mich.-based supplier of automotive parts.
| Issuer: | DexKo Global Inc.
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| Amount: | $665 million
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| Maturity: | Oct. 15, 2029
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| Securities: | Senior notes
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| Bookrunners: | Deutsche Bank Securities Inc., BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, RBC Capital Markets LLC, Barclays, BNP Paribas Securities Corp., CIBC World Markets Corp. and TD Securities (USA) LLC
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| Coupon: | 6 5/8%
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| Price: | Par
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| Yield: | 6 5/8%
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| Spread: | 536 bps
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| Call protection: | Three years
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| Trade date: | Sept. 23
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| Ratings: | Moody's: Caa1
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| S&P: CCC
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6¾% area
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| Marketing: | Roadshow
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