CEVA downsizes bonds by $1 billion equivalent, talks $400 million secured notes at 10% area

By Paul A. Harris

St. Louis, July 31 - CEVA Group plc slashed its junk bond offering by $1 billion equivalent, replacing the bonds with bridge financing on Tuesday, according to market sources.

The company, which is in the debt markets for financing to help fund its acquisition of Netherlands-based logistics and supply chain management company EGL Inc., meanwhile restructured the remaining $400 million tranche of second-lien secured notes.

The secured notes will be offered only in a dollar-denominated fixed-rate tranche. Proposed euro-denominated tranches, as well as a proposed floating-rate tranche, were withdrawn.

The secured notes are talked at the 10% area.

Pricing is expected on Wednesday.

Credit Suisse, Morgan Stanley, Bear Stearns, UBS Investment Bank, JP Morgan and Goldman Sachs & Co. are joint bookrunners for the notes, which are being placed via Rule 144A and Regulation S for life.

CEVA Group is an Apollo Management portfolio company.

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