Published on 1/9/2013 in the Prospect News High Yield Daily.
New Issue: HD Supply sells upsized $950 million 10½% eight-year notes at par
By Paul A. Harris
Portland, Ore., Jan. 9 - HD Supply, Inc. priced an upsized $950 million issue of eight-year senior subordinated notes (Caa2/CCC+/) at par to yield 10½% on Wednesday, according to a syndicate source.
The yield printed 12.5 basis points inside of the low end of price talk that had been set in the 10¾% area.
Bank of America Merrill Lynch, Goldman Sachs & Co., Barclays, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC and UBS Securities LLC were the joint bookrunners for the quick-to-market deal, which was upsized from $650 million.
Proceeds will be used to redeem a portion of the company's outstanding senior subordinated notes.
HD Supply is an Atlanta-based industrial distributor serving the infrastructure & energy, maintenance, repair & improvement and specialty construction sectors.
Issuer: | HD Supply, Inc.
|
Amount: | $950 million, increased from $650 million
|
Maturity: | Jan. 15, 2021
|
Securities: | Senior subordinated notes
|
Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co., Barclays, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, UBS Securities LLC
|
Co-managers: | Baird, BB&T Capital Markets, Raymond James & Associates Inc., SunTrust Robinson Humphrey Inc.
|
Coupon: | 10½%
|
Price: | Par
|
Yield to worst: | 10½%
|
Spread: | 908 bps
|
Call protection: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2016, then callable at a premium
|
Equity clawback: | 35% at 110.5 until Jan. 15, 2016
|
Special equity clawback: After July 31, 2013, either 100% of the notes or, if less than 100%, an amount up to 2/3 of the notes may be redeemed with IPO proceeds at 104 until Jan. 31, 2014 and at 102 after Jan. 31, 2014 until July 31, 2014
|
Trade date: | Jan. 9
|
Settlement date: | Jan. 16
|
Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
Distribution: | Rule 144A with registration rights and Regulation S
|
Price talk: | 10¾% area
|
Marketing: | Quick to market
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.