By Paul A. Harris
Portland, Ore., Jan. 4 – EnerSys priced a $300 million issue of eight-year senior notes (Ba3/BB+) at par to yield 6 5/8% on Thursday, according to a market source.
The yield printed at the tight end of yield talk in the 6¾% area.
J.P. Morgan Securities LLC was the lead.
Demand for the paper was more than $600 million on Wednesday afternoon, according to a trader.
The Reading, Pa.-based provider of batteries and other stored energy solutions plans to use the proceeds to repay and retire a portion of its outstanding term loans, with the remaining proceeds to be used for general corporate purposes, including repayment of revolver debt.
| Issuer: | EnerSys
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| Amount: | $300 million
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| Issue: | Senior notes
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| Maturity: | Jan. 15, 2032
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| Lead: | J.P. Morgan Securities LLC
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| Coupon: | 6 5/8%
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| Price: | Par
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| Yield: | 6 5/8%
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| Spread: | 264 bps
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| First call: | Jan. 15, 2027 at 103.313
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| Trade date: | Jan. 4
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| Settlement date: | Jan. 11
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| Ratings: | Moody’s: Ba3
|
| S&P: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6¾% area
|
| Marketing: | Roadshow
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