New Issue: Ellucian prices upsized $400 million 9 5/8%/10 3/8% PIK toggle notes at 99 to yield 9.88%

By Paul A. Harris

Portland, Ore., Nov. 14 - Ellucian, Inc. priced an upsized $400 million issue of five-year senior PIK toggle notes (Caa2/CCC+) at 99 to yield 9.88% on Thursday, according to a buyside source.

The notes pay a cash coupon of 9 5/8%, which steps up by 75 basis points to 10 3/8% in the event of a PIK coupon payment.

The deal was increased from an original size of $350 million.

The yield came in the middle of the 9¾% to 10% yield talk.

JP Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and Deutsche Bank Securities Inc. were the joint bookrunners for the quick-to-market transaction.

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.

Issuer:	Sophia Holding Finance, L.P. and Sophia Holding Finance, Inc. (Ellucian, Inc.)
Face amount:	$400 million, increased from $350 million
Proceeds:	$396 million
Maturity:	Dec. 1, 2018
Securities:	Senior PIK toggle notes
Bookrunners:	JP Morgan Securities LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp., Deutsche Bank Securities Inc.
Cash coupon:	9 5/8%
PIK coupon:	10 3/8%
Price:	99
Yield:	9.88%
Spread:	855 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 1, 2014, then callable at 102, 101, par on and after Dec. 1, 2016
Equity clawback:	For 40% at 109.625 until Dec. 1, 2014
Trade date:	Nov. 14
Settlement date:	Nov. 19
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	9¾% to 10%
Marketing:	Quick to market

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