By Paul A. Harris
Portland, Ore., Oct. 6 – Enerflex Ltd. priced a $625 million issue of 9% five-year senior secured notes (B2/BB-/BB-) at 90.676 to yield 11½% on Thursday, according to market sources.
The yield printed 25 basis points tighter than the 11¾% to 12% yield talk. The coupon came on top of coupon talk.
There were also covenant changes which primarily bear upon how the company may disburse cash and incur additional debt.
The deal ended up three-times to four-times oversubscribed, according to a sellside source, who added that the notes broke sharply higher, heading out the door on Thursday at 93¾ bid, up 2½ points.
The Enerflex bond offering played to a quality book containing orders from more than 100 accounts, the source added.
Left bookrunner RBC Capital Markets LLC will bill and deliver. Other joint active bookrunners were Scotia Capital (USA) Inc. and TD Securities (USA) LLC.
Proceeds will be used to refinance debt and fund a portion of the acquisition of Exterran Corp. into escrow.
Enerflex is a Calgary, Alta.-based publicly traded supplier of services to the power generation and gas production industries.
| Issuer: | Enerflex Ltd.
|
| Amount: | $625 million
|
| Securities: | Senior secured notes
|
| Maturity: | Oct. 15, 2027
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| Joint active bookrunners: | RBC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Co-managers: | ATB Capital Markets Inc., BMO Capital Markets Corp., CIBC World Markets Corp. and National Bank of Canada Financial Inc.
|
| Coupon: | 9%
|
| Price: | 90.676
|
| Yield: | 11½%
|
| Spread: | 744.7 bps
|
| First call: | Oct. 15, 2024 at 106.75
|
| Trade date: | Oct. 6
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| Settlement date: | Oct. 12
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| Ratings: | Moody's: B2
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| S&P: BB-
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| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% coupon to yield 11¾% to 12%
|
| Marketing: | Roadshow
|
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