By Paul A. Harris
Portland, Ore., March 7 - Emeco Pty Ltd. priced a downsized $335 million issue of 9 7/8% five-year senior secured notes (Ba3/BB-/) at 98.563 to yield 10¼% on Friday, according to an informed source.
The deal was downsized from $360 million.
The yield printed at the tight end of the 10¼% to 10½% yield talk. The reoffer price came in line with discount talk of 2.5 points maximum original issue discount.
Credit Suisse Securities (USA) LLC was the bookrunner.
In addition to the downsizing, call protection was increased to three years from two years. The equity clawback was extended to cover the length of the non-call period, increased from two years. The equity clawback premium was decreased to 35% from 40%.
The Osborne Park, Australia-based mining equipment rental company plans to use the proceeds to repay debt and for general corporate purposes.
| Issuer: | Emeco Pty Ltd.
|
| Amount: | $335 million, downsized from $360 million
|
| Proceeds: | $330 million
|
| Maturity: | March 15, 2019
|
| Securities: | Senior secured notes
|
| Bookrunner: | Credit Suisse Securities (USA) LLC
|
| Coupon: | 9 7/8%
|
| Price: | 98.563
|
| Yield: | 10¼%
|
| Spread: | 857 bps
|
| First call: | March 15, 2017 at 104.938 (call protection increased to three years from two years)
|
| Equity clawback: | 35% at 109.875 until March 15, 2017 (equity clawback was extended to cover the length of the non-call period, increased from two years; the clawback premium was decreased to 35% from 40%)
|
| Change-of-control put: | 101%
|
| Trade date: | March 7
|
| Settlement date: | March 17
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10¼% to 10½% with 2.5 points maximum OID
|
| Marketing: | Roadshow
|
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