By Paul A. Harris
Portland, Ore., March 10 – Vehicle leasing company LeasePlan Corp. NV priced two tranches of five-year senior secured notes (B1/BB+/BB-) on Thursday, according to sources.
The deal relaunched earlier in the week after having been postponed on Feb. 11 due to market conditions.
In accordance with market expectations the notes priced on Thursday inside of original price talk.
A €1.25 billion tranche priced at par to yield 6 7/8%. The euro-denominated notes priced at the tight end of yield talk in the 7% area. That talk had been reduced from original yield talk of 7½% to 7¾%.
A $400 million tranche priced at par to yield 7 3/8%, at the tight end of relaunch yield talk in the 7½% area. However, as with the euro tranche, the dollar-denominated notes priced well inside of the original talk in the 8¼% area.
A proposed tranche of euro-denominated seven-year notes was abandoned.
Prior to the entire deal being pulled, that longer maturity euro-denominated tranche had been talked at 8% to 8¼%.
Joint bookrunner JPMorgan will bill and deliver. Goldman Sachs International, Credit Suisse and ING are also joint bookrunners.
Proceeds will be used to fund the buyout of the Flevoland, Netherlands-based company by a consortium of investors.
The issuing entity is special purpose vehicle Lincoln Finance Ltd.
| Issuer: | Lincoln Finance Ltd. (LeasePlan Corp. NV)
|
| Maturity: | April 15, 2021
|
| Securities: | Senior secured notes
|
| Bookrunners: | JPMorgan (bill and deliver), Goldman Sachs International, Credit Suisse, ING
|
| Trade date: | March 10
|
| Settlement date: | March 16
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB+
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Relaunched on a brief roadshow following a full roadshow in February
|
|
|
| Euro-denominated notes
|
| Amount: | €1.25 billion
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 711 bps
|
| First call: | April 15, 2018 at 103.438
|
| Price talk; | 7% area; earlier talk was 7½% to 7¾%
|
|
|
| Dollar-denominated notes
|
| Amount: | $400 million
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 592 bps
|
| First call: | April 15, 2018 at 103.688
|
| Price talk: | 7½% area; earlier talk was 8¼% area
|
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