Ellucian to price $350 million of five-year PIK toggle notes Thursday

By Paul A. Harris

Portland, Ore., Nov. 14 - Ellucian, Inc. plans to price a $350 million offering of five-year PIK toggle notes (expected ratings Caa2/CCC+) on Thursday following a late morning investor conference call, according to a market source.

JP Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, BMO Securities and Deutsche Bank Securities Inc. are managing the sale.

The Rule 144A and Regulation S for life notes come with one year of call protection, after which the notes will be callable at 102.

The notes will feature a 75 basis points step-up in the coupon for PIK payments.

The Fairfax, Va.-based provider of software and services to the education community plans to use the proceeds to fund a dividend to its shareholders.

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