Published on 1/29/2013 in the Prospect News High Yield Daily.
New Issue: HD Supply prices $1.28 billion senior notes due July 2020 at par to yield 7½%
By Paul A. Harris
Portland, Ore., Jan. 29 - HD Supply, Inc. priced a $1,275,000,000 issue of senior notes due July 15, 2020 (Caa1/CCC+/) at par to yield 7½% on Tuesday, according to a syndicate source.
The yield printed at the wide end of price talk that was set in the 7 3/8% 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 issue.
Proceeds will be used to refinance the company's 14 7/8% senior notes due 2020.
HD Supply is an Atlanta-based industrial distributor serving the infrastructure and energy, maintenance, repair and improvement, and specialty construction sectors.
| Issuer: | HD Supply, Inc.
|
| Amount: | $1,275,000,000
|
| Maturity: | July 15, 2020
|
| Securities: | Senior 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: | Robert W. Baird & Co. Inc., BB&T Capital Markets, Raymond James & Associates Inc., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 613 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2016, then callable at 103.75
|
| Equity clawback: | 35% at 107.5 until Oct. 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 29
|
| Settlement date: | Feb. 1
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7 3/8% area
|
| Marketing: | Quick to market
|
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