Published on 2/7/2024 in the Prospect News High Yield Daily.
New Issue: Hillenbrand prices $500 million five-year notes at par to yield 6¼%
By Paul A. Harris
Portland, Ore., Feb. 7 – Hillenbrand, Inc. priced a $500 million issue of five-year senior notes (Ba1/BB+) at par to yield 6¼% in a Wednesday drive-by, according to market sources.
The yield printed in the middle of yield talk in the 6¼% area. Initial guidance was in the 6½% area.
HSBC Securities (USA) Inc. was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC and Morgan Stanley & Co. LLC.
The deal was heard to have been playing to $800 million of demand at noon ET on Wednesday, a trader said.
The Batesville, Ind.-based diversified industrial company plans to use the proceeds to repay debt under its revolver, without a reduction in commitment, and may use any remaining proceeds for general corporate purposes, including repayment of other debt.
Hillenbrand is a provider of highly engineered, mission-critical, processing equipment and systems, serving industry sectors including durable plastics, food and recycling.
| Issuer: | Hillenbrand, Inc.
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| Amount: | $500 million
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| Issue: | Senior notes
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| Maturity: | Feb. 15, 2029
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| Left bookrunner: | HSBC Securities (USA) Inc. (bill and deliver)
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| Joint bookrunners: | J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC and Morgan Stanley & Co. LLC
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| Co-managers: | BofA Securities Inc., BMO Capital Markets Corp., Citizens JMP Securities LLC, Commerz Markets LLC, PNC Capital Markets LLC, SMBC Nikko Securities America Inc., Truist Securities Inc., CJS Securities Inc., C.L. King & Associates Inc., D.A. Davidson & Co., DZ Financial Markets LLC, SEB Securities Inc., Sidoti & Co. LLC and UniCredit Capital Markets LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Skadden, Arps, Slate, Meagher & Flom LLP and Ice Miller LLP
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| Counsel to underwriters: | Latham and Watkins, LLP
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| Coupon: | 6¼%
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| Price: | Par
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| Yield: | 6¼%
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| Spread: | 220 bps
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| First call: | Feb. 15, 2026 at 103.125
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| Trade date: | Feb. 7
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| Settlement date: | Feb. 14
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| Ratings: | Moody’s: Ba1
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| S&P: BB+
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| Distribution: | SEC registered
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| Price talk: | 6¼% area
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| Marketing: | Drive-by
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