By Paul A. Harris
Portland, Ore., Sept. 19 – JPW Industries, Inc. priced a $220 million issue of seven-year senior secured notes (B3/B) at par to yield 9% on Tuesday, according to a syndicate source.
The yield printed at the tight end of yield talk in the 9% area.
The notes become callable after Oct. 1, 2020 at 106.75. An issuer friendly special call provision that would have allowed the company to call up to 10% of the issue annually at 103 during the non-call period was withdrawn.
Goldman Sachs & Co. was the left bookrunner. BMO Securities and BNP Paribas Securities Corp. were the joint bookrunners.
Proceeds, together with an equity investment, will be used to repay existing credit facilities and fund the buyout of JPW Industries by Gamut Capital Management LP from Tenex Capital Management.
JPW Industries is a La Vergne, Tenn.-based designer, marketer and distributor of branded metalworking and woodworking equipment and specialty shop tools.
| Issuer: | JPW Industries, Inc.
|
| Amount: | $220 million
|
| Maturity: | Oct. 1, 2024
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | BMO Securities, BNP Paribas Securities Corp.
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 691 bps
|
| First call: | Oct. 1, 2020 at 106.75
|
| Trade date: | Sept. 19
|
| Settlement date: | Sept. 22
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% area
|
| Marketing: | Roadshow
|
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