By Paul A. Harris
St. Louis, Sept. 23 - Evertec, Inc. priced a $220 million issue of restructured eight-year notes (Caa1/B-) at par to yield 11% on Thursday, according to an informed source.
The yield printed on top of price talk.
In the restructuring, a year was added to the tenor of the notes, which were sold as eight-year notes with four years of call protection. The issue had been in the market with a seven-year tenor, and three years of call protection.
There were also modifications made to the covenants.
Bank of America Merrill Lynch and Morgan Stanley & Co. were the joint bookrunners.
Proceeds will be used to help fund the acquisition of a 51% stake in Evertec by Apollo Group.
Evertec is a San Juan, Puerto Rico-based provider of transaction processing, payment processing, merchant acquiring and other related services in Puerto Rico and certain countries within the Caribbean and Central and Latin America.
| Issuer: | Evertec, Inc.
|
| Issue: | Senior notes
|
| Amount: | $220 million
|
| Maturity: | Oct. 1, 2018
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 887 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 1 2014, then callable at 105.50, 102.75, par on or after Oct. 1, 2016
|
| Equity clawback: | 35% at 111.0 until Oct. 1, 2013
|
| Change of control: | Put at 101
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley
|
| Trade date: | Sept. 23
|
| Settlement date: | Sept. 30
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 11% area
|
| Marketing: | Roadshow
|
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