Published on 11/16/2009 in the Prospect News High Yield Daily.
New Issue: Altra sells upsized $210 million 8 1/8% seven-year notes at 98.691 to yield 8 3/8%
By Paul A. Harris
St. Louis, Nov. 16 - Altra Holdings, Inc. priced an upsized $210 million issue of 8 1/8% seven-year senior secured notes (B1/B+/) at 98.691 to yield 8 3/8% on Monday, according to an informed source.
The yield printed at the tight end of the 8½% area yield talk. The issue price came in line with the 1 point to 1½ points of discount talk.
The yield was equivalent at pricing to a 555 basis point spread over Treasuries.
Jefferies & Co., Bank of America Merrill Lynch and J.P. Morgan Securities Inc. were joint bookrunners for the deal, which was upsized from $200 million.
Co-managers were KeyBanc Capital Markets and Stephens Inc.
Proceeds will be used to repurchase or redeem Altra's 9% notes and to repay the revolving credit facility of TB Wood, which Altra acquired in the spring of 2007.
Altra is a Quincy, Mass.-based manufacturer of mechanical power transmission and motion control products.
| Issuer: | Altra Holdings, Inc.
|
| Face amount: | $210 million, increased from $200 million
|
| Proceeds: | $207,251,000 (approximate)
|
| Maturity: | Dec. 1, 2016
|
| Securities: | Senior secured notes
|
| Bookrunners: | Jefferies & Co., Bank of America Merrill Lynch, J.P. Morgan Securities Inc.
|
| Co-managers: | KeyBanc Capital Markets, Stephens Inc.
|
| Coupon: | 8 1/8%
|
| Price: | 98.691
|
| Yield: | 8 3/8%
|
| Spread: | 555 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Dec. 1, 2012, then at 106.094, 104.063, 102.031, par on and after Dec. 1, 2015
|
| Additional call option: | During each 12-month period ending on Dec. 1, 2010, 2011 and 2012, Altra may redeem up to 10% of the originally issued principal amount of notes, at a redemption price equal to 103.0
|
| Equity clawback: | 35% at 108.125 until Dec. 1, 2012
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 25
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 8½% area yield, including 1-1½ points OID
|
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