CEVA hikes talk on $400 million notes - now 10% coupon to yield 11%

By Paul A. Harris

St. Louis, Aug. 1 - CEVA Group plc increased the price talk on its $400 million offering of seven-year second-lien notes (B3/B-) on Wednesday, according to market sources.

The revised price talk has the notes pricing with a 10% coupon at a significant discount to yield 11%. Previously the notes were talked at the 10% area.

Sources were expecting terms to emerge Wednesday; however, as Prospect News went to press, no terms were available.

The CEVA bond deal was launched at $1.4 billion equivalent.

However on Tuesday the company slashed the offering by $1 billion equivalent, replacing proposed dollar-denominated and euro-denominated senior unsecured bonds with bridge financing.

The company, which is in the debt markets 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, eliminating proposed euro-denominated tranches and floating-rate tranches.

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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