By Paul A. Harris
St. Louis, July 1 - Commercial Barge Line Co. priced a $200 million issue of 12½% eight-year senior secured notes (B2/B+/) at 95.181 to yield 13½% on Wednesday, according to an informed source.
The yield was printed 25 basis points beyond the wide end of the 13% to 13¼% price talk.
Banc of America Securities LLC, UBS Investment Bank, SunTrust Robinson Humphrey Inc. and Wachovia Securities LLC were the bookrunners. RBS Securities Inc. was the co-manager.
The Jeffersonville, Ind.-based transportation services company has secured the deal on a second-priority basis by all the assets of the issuer and guarantors that secure obligations under the company's new senior secured asset-backed loan.
The notes are guaranteed by American Commercial Lines Inc., as well as wholly owned subsidiaries American Commercial Lines LLC, ACL Transportation Services LLC and Jeffboat LLC.
Proceeds, together with borrowings under the company's new credit facility, will be used to repay the existing credit facility and for general corporate purposes.
| Issuer: | Commercial Barge Line Co.
|
| Guarantors: | American Commercial Lines Inc. and units American Commercial Lines LLC, ACL Transportation Services LLC and Jeffboat LLC
|
| Face amount: | $200 million
|
| Proceeds: | $190.362 million
|
| Maturity: | July 15, 2017
|
| Security description: | Senior secured notes
|
| Bookrunners: | Banc of America Securities LLC, UBS Investment Bank, SunTrust Robinson Humphrey Inc., Wachovia Securities LLC
|
| Co-manager: | RBS Securities Inc.
|
| Coupon: | 12½%
|
| Price: | 95.181
|
| Yield: | 13½%
|
| Spread: | 1,013 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until July 15, 2013, then callable at a premium
|
| Equity clawback: | 35% at 112.50 until July 15, 2012
|
| Change-of-control put: | 101%
|
| Trade date: | July 1
|
| Settlement date: | July 7
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 13% to 13¼%
|
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