Published on 9/17/2020 in the Prospect News High Yield Daily.
New Issue: Alliance Data Systems prices $500 million 7% senior notes due January 2026 at par
By Paul A. Harris
Portland, Ore., Sept. 17 – Alliance Data Systems Corp. priced a $500 million non-rated issue of senior notes due Jan. 15, 2026 at par to yield 7% in a Thursday drive-by, according to market sources.
The yield printed 25 basis points beyond the wide end of the 6½% to 6¾% yield talk. Initial guidance was in the mid-to-high 6% area.
BofA Securities Inc., MUFG, Wells Fargo Securities LLC, Truist Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BNP Paribas Securities Corp., Fifth Third Securities Inc., RBC Capital Markets Corp. and CIBC World Markets Corp. were the joint bookrunners.
The Columbus, Ohio-based marketing services provider plans to use the proceeds to repay $493 million under its term loan.
| Issuer: | Alliance Data Systems Corp.
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| Amount: | $500 million
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| Maturity: | Jan. 15, 2026
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| Securities: | Senior notes
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| Bookrunners: | BofA Securities Inc., MUFG, Wells Fargo Securities LLC, Truist Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BNP Paribas Securities Corp., Fifth Third Securities Inc., RBC Capital Markets Corp. and CIBC World Markets Corp.
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| Co-managers: | SMBC Nikko Securities America Inc., Scotia Capital (USA) Inc., Citizens Capital Markets Inc., BBVA Securities Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Raymond James & Associates, Regions Securities LLC, Synovus Securities Inc. and U.S. Bancorp Investments Inc.
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| Coupon: | 7%
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| Price: | Par
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| Yield: | 7%
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| First call date: | Sept. 15, 2022
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| Trade date: | Sept. 17
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| Settlement date: | Sept. 22
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| Ratings: | Non-rated
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| Price talk: | 6½% to 6¾%
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| Marketing: | Drive-by
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