Forward Air talks $925 million eight-year notes with 9½% area coupon at 98, yield in 9 7/8% area

By Paul A. Harris

Portland, Ore., Sept. 22 – Forward Air Corp. talked its $925 million offering of eight-year senior secured notes (Ba3/BB-/BB) with a coupon in the 9½% area at OID 98 to yield in the 9 7/8% area, according to a syndicate source.

Forward Air also brought covenant revisions, which primarily bear upon how the company may disburse cash and incur additional debt.

Books close at noon ET on Friday, and the deal is set to price thereafter.

The Rule 144A and Regulation S for life notes come with three years of call protection. However, a special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and PNC Capital Markets LLC are the joint bookrunners.

Capital One Securities Inc., Citizens Capital Markets Inc., Deutsche Bank Securities Inc. and TD Securities (USA) LLC are the co-managers.

The Greeneville, Tenn.-based provider of transportation services plans to use the proceeds plus a $925 million term loan to support its acquisition of Omni Logistics LLC from Ridgemont Equity Partners and EVE Partners LLC, and to repay debt.

The issuing entity will be special purpose vehicle GN Bondco, LLC, which is to be merged with and into Clue Opco LLC.

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