New Issue: Engility prices downsized $300 million eight-year notes at par to yield 8 7/8%

By Paul A. Harris

Portland, Ore., Aug. 4 – Engility Corp. priced a downsized $300 million issue of eight-year senior notes (Caa1/B-) at par to yield 8 7/8% on Thursday, according to a syndicate source.

The issue size was decreased from $380 million, with the proceeds shifted to the concurrent term loan.

The yield printed at the tight end of yield talk in the 9% area.

Morgan Stanley & Co. LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Securities LLC, Deutsche Bank Securities and J.P. Morgan Securities LLC were the joint bookrunners.

The Chantilly, Va.-based provider of integrated services for the U.S. government plans to use the proceeds to refinance debt.

Issuer:	Engility Corp.
Amount:	$300 million, decreased from $380 million
Maturity:	Sept. 1, 2024
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Securities LLC, Deutsche Bank Securities, J.P. Morgan Securities LLC
Coupon:	8 7/8%
Price:	Par
Yield:	8 7/8%
Spread:	749 bps
Call:	Make-whole call at Treasuries plus 50 bps until Sept. 1, 2019, then callable at 104.438
Equity clawback:	35% at 108.875 until Sept. 1, 2019
Trade date:	Aug. 4
Settlement date:	Aug. 12
Ratings:	Moody's: Caa1
	S&P: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	9% area
Marketing:	Roadshow

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.