By Paul A. Harris
Portland, Ore., June 3 - Epicor Software Corp. priced an upsized $400 million issue of five-year senior PIK toggle notes (Caa2/CCC+) at 98.00 to yield 9.51% late Monday, according to an informed source.
The notes pay a cash coupon of 9% and a PIK coupon of 9¾%.
The coupons and reoffer price came on top of price talk.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC were the joint bookrunners for the quick-to-market deal that was upsized from $350 million.
Proceeds will be used to fund a dividend.
The issuing entity is Eagle Midco Inc., the parent of Epicor, a Dublin, Calif.-based provider of enterprise business software services.
| Issuer: | Eagle Midco, Inc.
|
| Face amount: | $400 million, upsized from $350 million
|
| Proceeds: | $392 million
|
| Maturity: | June 15, 2018
|
| Securities: | Senior PIK toggle notes
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC
|
| Co-manager: | MCS Capital Markets LLC
|
| Cash coupon: | 9%
|
| PIK coupon: | 9¾%
|
| Price: | 98.00
|
| Cash yield: | 9.51%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Dec.15, 2014, then callable at 102 Equity clawback: 35% at 109.0 until Dec. 15, 2014
|
| Trade date: | June 3
|
| Settlement date: | June 10
|
| Ratings: Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 9% cash coupon, 9¾% PIK coupon at 98 area
|
| Marketing: | Quick to market
|
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