By Paul A. Harris
Portland, Ore., April 4 – Dye & Durham Corp. priced an upsized $555 million issue of five-year senior secured notes (B1/B) at par to yield 8 5/8% on Thursday, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of yield talk in the 8¾% area. Initial guidance was in the low 9% area.
The deal, which came into market with $1.2 billion of reverse inquiry, was playing to $2.3 billion of demand on Thursday morning, a trader said.
Goldman Sachs & Co. LLC (left lead), Scotia Capital (USA) Inc. and CIBC World Markets Corp. were the bookrunners.
Proceeds, including incremental proceeds resulting from the $55 million upsize of the deal, plus borrowings from the company’s senior secured credit facilities and cash on hand, will be used to refinance the Ares credit facilities, repurchase some or all of the company’s 3¾% convertible debentures due 2026, fund working capital needs and for general corporate purposes.
Dye & Durham is a Toronto-based provider of cloud-based legal practice management software.
| Issuer: | Dye & Durham Corp.
|
| Amount: | $555 million
|
| Securities: | Senior secured notes
|
| Maturity: | April 15, 2029
|
| Bookrunners: | Goldman Sachs & Co. LLC (left lead), Scotia Capital (USA) Inc. and CIBC World Markets Corp.
|
| Coupon: | 8 5/8%
|
| Price: | Par
|
| Yield: | 8 5/8%
|
| Spread: | Treasuries plus 431 bps
|
| Call protection: | Two years
|
| Trade date: | April 4
|
| Settlement date: | April 11
|
| Ratings: | Moody’s: B1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% area
|
| Marketing: | Roadshow
|
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