Published on 1/16/2018 in the Prospect News High Yield Daily.
New Issue: Hologic prices $1 billion senior notes in two tranches
By Paul A. Harris
Portland, Ore., Jan. 16 – Hologic, Inc. priced $1 billion of senior notes (Ba3/BB-) in two tranches on Tuesday.
The deal featured a $600 million add-on to the 4 3/8% notes due Oct. 15, 2025, which priced at par to yield 4¾%. The reoffer price came at the rich end of the 99.5 to par price talk.
In addition, Hologic priced $400 million of new 10-year notes at par to yield 4 5/8%. The yield printed at the tight end of yield talk in the 4¾% area.
Goldman Sachs & Co. was the left bookrunner. BofA Merrill Lynch, J.P. Morgan Securities LLC, MUFG, Citigroup Global Markets Inc., Wells Fargo Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
The Marlborough, Mass.-based medical technology company plans to use the proceeds to refinance its 5¼% senior notes due 2022.
| Issuer: | Hologic, Inc.
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co.
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| Joint bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, MUFG, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Morgan Stanley & Co. LLC
|
| Senior co-managers: | HSBC Securities, DnB NOR Markets Inc., SMBC Nikko
|
| Co-managers: | Fifth Third, Scotia, PNC Capital Markets LLC, TD Securities, Mizuho Securities USA Inc., Citizens Capital Markets Inc., KeyBanc, Janney Montgomery Scott LLC
|
| Trade date: | Jan. 16
|
| Settlement date: | Jan. 19
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Add-on notes
|
| Amount: | $600 million
|
| Maturity: | Oct. 15, 2025
|
| Security description: | Add-on to 4 3/8 senior notes due Oct. 15, 2025
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| First call: | Oct. 15, 2020 at 102.188
|
| Price talk: | 99.5 to par
|
| Original issue: | $350 million priced at par on Oct. 4, 2017
|
| Total issue size: | $950 million
|
|
|
| New 10-year notes
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| Amount: | $400 million
|
| Maturity: | Feb. 1, 2028
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| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| First call: | Feb. 1, 2023 at 102.312
|
| Price talk: | 4¾% area
|
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