By Paul Deckelman
New York, Oct. 28 – Jerrold Holdings Ltd. priced £220 million of five-year senior PIK toggle notes on Friday, European syndicate sources said.
The notes priced at a coupon of 10½% cash interest and 11¼% PIK interest.
Price guidance on the deal was 10¾% to 11%
The issue was brought to market via Credit Suisse Securities (Europe) Ltd. and will come with two years of call protection.
The roadshow for the offering began on Thursday. Timing was moved up, with pricing – which had been expected during the upcoming week – instead moved up to Friday.
The notes are being issued by Bracken MidCo 1 plc.
Jerrold – a financial institution based in Cheadle, England – plans to use the proceeds to help finance the purchase of equity interests in Jerrold held by Equistone and Standard Life Investments, as well as to repurchase 30,000 class D shares held by members of Jerrold’s management, to lend £25.1 million to Jerrold for repayment of shareholder debt, to make payments related to Jerrold’s staff incentive plan and to pay expenses related to the transactions including the offering of the notes.
Following the completion of the transactions, the issuer’s subsidiary Bracken Midco2 Ltd. will become the parent company Jerrold.
The notes will be secured by a pledge over the issued capital stock in Midco2 and an assignment of all existing and future intercompany loans in respect of which the issuer is the lender, including, as of the issue date, an intercompany loan made by the issuer to Midco2 for the net proceeds of the offering of the notes and certain other intercompany receivables.
The notes will not be guaranteed by Jerrold or any of its subsidiaries.
| Issuer: | Bracken MidCo 1 plc (subsidiary of Jerrold Holdings Ltd.)
|
| Amount: | £220 million
|
| Security description: | Senior PIK toggle notes
|
| Maturity | 2021
|
| Coupon: | Cash interest 10½%, PIK interest 11¼%
|
| Call protection: | Two years
|
| Pricing date: | Oct. 28
|
| Bookrunner: | Credit Suisse Securities (Europe) Ltd.
|
| Distribution: | Rule 144A/Regulation S
|
| Marketing: | Short roadshow
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
