New Issue: Virtusa prices $300 million eight-year notes at par to yield 7 1/8%

By Paul A. Harris

Portland, Ore., Dec. 9 – Virtusa Corp. priced a $300 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 7 1/8% on Wednesday, according to a syndicate source.

The deal launched earlier Wednesday at 7 1/8%. Initial guidance had been in the 8% area.

BofA Securities Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Nomura Securities International Inc. were the joint bookrunners.

Proceeds will be used to help fund the buyout of the Southborough, Mass.-based information technology services company by Baring Private Equity Asia and pay off Virtusa’s credit facilities.

Issuers:	Austin HoldCo Inc. and Austin BidCo Inc., and upon the merger, Virtusa Corp.
Amount:	$300 million
Maturity:	Dec. 15, 2028
Securities:	Senior notes
Bookrunners:	BofA Securities Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Nomura Securities International Inc.
Coupon:	7 1/8%
Price:	Par
Yield:	7 1/8%
Call protection:	Three years
Trade date:	Dec. 9
Settlement date:	Dec. 17
Ratings:	Moody's: Caa2
	S&P: CCC+
Distribution:	Rule 144A and Regulation S
Price talk:	7 1/8%, revised from guidance in the 8% area
Marketing:	Roadshow

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