Published on 9/21/2015 in the Prospect News High Yield Daily.
New Issue: Ellucian prices $490 million 9% notes due 2023 to yield 9 5/8%
By Paul A. Harris
Portland, Ore., Sept. 21 – Ellucian (Sophia LP) priced a $490 million issue of 9% eight-year senior notes (Caa2/CCC+) at 96.568 to yield 9 5/8% on Monday, according to market sources.
The coupon came on top of coupon talk. The yield came in the middle of the 9½% to 9¾% yield talk.
The deal was downsized by $100 million, and the company shifted those proceeds to its term loan B, which was upsized to $1.56 billion from $1.46 billion.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc. and Jefferies LLC were the joint bookrunners for the bond deal.
Proceeds will be used to fund the buyout of the company by TPG Capital and Leonard Green Partners from Hellman & Friedman and JMI Equity.
The issuer is a Fairfax, Va., provider of higher education software and services.
| Issuers: | Ensemble S Merger Sub, Inc., Sophia Finance, Inc. and Sophia, LP after the acquisition
|
| Face amount: | $490 million, decreased from $590 million
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| Proceeds: | $473 million
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| Maturity: | Sept. 30, 2023
|
| Securities: | Senior notes
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| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Jefferies
|
| Coupon: | 9%
|
| Price: | 96.568
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| Yield: | 9 5/8%
|
| Spread: | 706 bps
|
| Call: | Make-whole call until Sept. 30, 2018, then callable at 104.5
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| Trade date: | Sept. 21
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| Settlement date: | Sept. 30
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| Ratings: | Moody's: Caa2
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| Standard & Poor's: CCC+
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| Distribution: | Rule 144A with registration rights and Regulation S
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| Price talk: | 9% coupon at a discount to yield 9½% to 9¾%
|
| Marketing: | Roadshow
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