By Paul A. Harris
Portland, Ore., May 3 - Evertec, LLC and Evertec Finance Corp. priced a $40 million add-on to their 11% senior notes due Oct. 1, 2018 (Caa1/B-/) at 105 on Wednesday, according to a syndicate source.
The reoffer price renders a 9.921% yield to maturity and a 9.575% yield to worst.
Bank of America Merrill Lynch was the lead left bookrunner. Morgan Stanley & Co. LLC was the joint bookrunner.
Proceeds, together with the proceeds from the credit agreement transactions and available cash on hand, will be used to pay a cash dividend to the direct parent company, Carib Holdings, which in turn will ultimately be paid as a cash dividend to the stockholders of the indirect parent company, Carib Inc.
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 within Central and Latin America.
The original $220 million issue priced at par in September 2010.
| Issuers: | Evertec, LLC and Evertec Finance Corp.
|
| Face amount: | $40 million
|
| Proceeds: | $42.44 million
|
| Maturity: | Oct. 1, 2018
|
| Security description: | Add-on to 11% senior notes due Oct. 1, 2018
|
| Lead left bookrunner: | Bank of America Merrill Lynch
|
| Joint bookrunner: | Morgan Stanley & Co. LLC
|
| Co-managers: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., UBS Securities LLC
|
| Coupon: | 11%
|
| Price: | 105
|
| Yield to maturity: | 9.921%
|
| Yield to worst: | 9.575%
|
| 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 until Oct. 1, 2013
|
| Trade date: | May 3
|
| Settlement date: | May 7 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights
|
| Original issue: | $220 million issue priced at par in September 2010
|
| Total issue size: | $260 million
|
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