Evertec withdraws $400 million secured notes offering, says cost of capital ‘not attractive’

By Paul A. Harris

Portland, Ore., June 20 – Evertec, Inc. withdrew its $400 million offering of non-callable eight-year senior secured notes (B1/BB-) from the market, according to a Friday press release from the company.

The deal had been talked at 5% to 5¼% and set to price on Friday.

“Evertec was seeking to opportunistically refinance our already strong balance sheet and gain access to longer term, low fixed-rate capital,” Juan Jose Roman, executive vice president and chief financial officer of the San Juan, Puerto Rico-based company, said in a press release.

“While we met with significant investor demand, we have chosen not to proceed with the financing given that the cost of capital achievable was not attractive to the company,” Roman added.

J.P. Morgan Securities LLC and BofA Merrill Lynch were the joint bookrunners.

The company planned to use the proceeds to repay its term loan B in full.

Evertec is a full-service transaction processing business that operates in Latin America.

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