By Paul A. Harris
St. Louis, May 3 - iPayment, Inc. priced a downsized $205 million issue of 9¾% eight-year notes (Caa1/CCC+) at 98.64 to yield 10% on Wednesday, according to a market source.
The yield came at the tight end of the 10% to 10¼% price talk.
The sale generated $202.212 million of proceeds.
Banc of America Securities LLC ran the books for the notes, which were issued via Rule 144A with registration rights and via Regulation S. JP Morgan was the co-manager.
iPayment Inc. downsized the issue to from $280 million on Tuesday, shifting $65 million to its term loan and decreasing the amount of proceeds by $10 million.
The proceeds will be used to partially fund management's acquisition of the company.
iPayment is a Nashville, Tenn.-based provider of credit and debit card-based payment processing services focused on small merchants across the United States.
| Issuer: | iPayment, Inc.
|
| Face amount: | $205 million
|
| Proceeds: | $202.212 million
|
| Maturity: | May 15, 2014
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Banc of America Securities LLC
|
| Co-manager: | JP Morgan
|
| Coupon: | 9¾%
|
| Price: | 98.64
|
| Yield: | 10%
|
| Spread: | 487 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until May 15, 2010, then callable at a premium
|
| Equity clawback: | Until May 15, 2009 for 35% at 109.75
|
| Trade date: | May 3
|
| Settlement date: | May 10
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 10%-10¼%
|
|
|
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