Published on 5/23/2013 in the Prospect News High Yield Daily.
New Issue: Equiniti prices £440 million 51/2-year notes in two tranches
By Paul A. Harris
Portland, Ore., May 23 - Financial services provider Equiniti completed a £440 million two-part issuance of 51/2-year notes (B3/B/) on Thursday, according to a market source.
A £250 million tranche of fixed-rate notes priced at par to yield 6¾%, at the tight end of the 6¾% to 7% yield talk.
And a £190 million tranche of floating-rate notes priced at par to yield three-month Libor plus 550 basis points. The Libor spread and reoffer price came on top of price talk. The target tranche-size range was £175 million to £200 million.
Joint bookrunner JPMorgan will bill and deliver. Lloyds TSB and Citigroup were also joint bookrunners.
Proceeds will be used to repay bank debt.
The issuer is based in Lancing, England.
| Issuer: | Equiniti Bondco plc
|
| Amount: | £440 million
|
| Maturity: | Dec. 15, 2018
|
| Securities: | Senior secured notes
|
| Bookrunners: | JPMorgan (bill and deliver), Lloyds TSB, Citigroup
|
| Trade date: | May 23
|
| Settlement date: | June 4
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Fixed-rate notes
|
| Amount: | £250 million
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 572 bps
|
| Call features: | Make-whole call at Gilts plus 50 bps until June 15, 2015, then callable at 103.375, 101.688, par on and after June 15, 2017
|
| Equity clawback: | 40% at 106.75 until June 15, 2015
|
| Change-of-control put: | 101%
|
| Price talk: | 6¾% to 7%
|
|
|
| Floating-rate notes
|
| Amount: | £190 million (target tranche-size range was £175 million to £200 million)
|
| Coupon: | Three-month Libor plus 550 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 550 bps
|
| Call features: | Make-whole call at Gilts plus 50 bps until June 15, 2014, then callable at 101, par on and after June 15, 2015
|
| Change-of-control put: | 101%
|
| Price talk: | Libor plus 550 bps area at par
|
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