By Paul A. Harris
Portland, Ore., June 4 - It was back to the drawing board for British financial services provider Equiniti on Tuesday as the company revisited the primary market with a £440 million two-part offering of 5.5-year notes (B3/B/) because of a regulatory snag, according to market sources.
The original deal priced in late May but was prevented from settling when the United Kingdom's Financial Conduct Authority held up a regulatory approval that the issuer and its underwriters expected to be a mere formality.
In Tuesday's deal, tranche sizes and structures were the same; however, rates were higher in what one sellsider referred to as a concession to the market.
A £250 million tranche of fixed-rate notes priced at par to yield 7 1/8%. The new yield printed at the tight end of yield talk in the 7¼% area, but 37.5 basis points higher than the 6¾% yield that the company printed on the bonds that priced on May 23.
Meanwhile a £190 million tranche of floating-rate notes priced at par to yield Libor plus 575 bps, on top of spread talk, but 25 bps higher than the spread on the floating-rate notes which were priced on May 23.
The issuing entity on the revisited deal was Equiniti Newco 2 plc. The issuer on the deal which failed to settle was Equiniti Bondco plc.
As before, Joint bookrunner JPMorgan will bill and deliver. Lloyds TSB and Citigroup were also joint bookrunners.
Proceeds will be used to repay bank debt as was the case with the previous deal. However, those proceeds will be escrowed until the regulatory requirements are satisfied.
The issuer is based in Lancing, England.
| Issuer: | Equiniti Newco 2 plc
|
| Amount: | £440 million
|
| Maturity: | Dec. 15, 2018
|
| Securities: | Senior secured notes
|
| Bookrunners: | JPMorgan (bill and deliver), Lloyds TSB, Citigroup
|
| Trade date: | June 4
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Fixed-rate notes
|
| Amount: | £250 million
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Price talk: | 7¼% area
|
|
|
| Floating-rate notes
|
| Amount: | £190 million
|
| Coupon: | Three-month Libor plus 575 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 575 bps
|
| Price talk: | Libor plus 575 bps
|
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