By Paul Deckelman
New York, June 18 – Hologic, Inc. priced $1 billion of seven-year senior notes (B1/BB) at par to yield 5¼% on Thursday, high-yield syndicate sources said.
Price talk on the issue had been in the 5 3/8% area.
The quick-to-market offering priced during the afternoon, after having been announced during the morning. It was shopped around to potential investors via a mid-morning conference call.
The Rule 144A and Regulation S for life offering was brought to market via joint bookrunning managers Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and MUFG.
The notes will have three years of call protection.
Hologic, a Bedford, Mass.-based developer, manufacturer and supplier of premium diagnostic products, medical imaging systems and surgical products, plans to use the proceeds from the bond offering plus available cash to redeem all of its outstanding $1 billion of 6¼% senior notes due 2020 at a total redemption price of $1.031 billion.
In addition, the company will make a final $31.25 million payment on the 6¼% notes for interest accrued to Aug. 1 to holders of record of the notes as of July 15.
Pending the application of the net proceeds, the company may invest those proceeds in short-term securities.
| Issuer: | Hologic, Inc.
|
| Amount: | $1 billion
|
| Maturity: | July 15, 2022
|
| Securities: | Senior unsecured notes
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| Joint bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., MUFG
|
| Senior co-managers: | DnB NOR Markets Inc., HSBC Securities (USA) Inc., SMBC Nikko Securities America Inc.
|
| Co-managers: | Fifth Third Securities Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, KeyBanc Capital Markets Inc., RBS Securities Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
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| Call protection: | Three years of call protection, then callable at 100.125 in the fourth year, at 100.0625 in the fifth year and finally at par in the sixth year and thereafter
|
| Trade date: | June 18
|
| Settlement date: | July 2 (T+10)
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| Ratings: | Moody’s: B1
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| Standard & Poor’s: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5 3/8% area
|
| Marketing: | Quick to market
|
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