By Paul A. Harris
Portland, Ore., Feb. 10 - ACL I Corp., the parent of American Commercial Lines Inc., priced an upsized $250 million issue of five-year payment-in-kind toggle notes (Caa1/CCC+/) on Thursday, according to an informed source.
The issue came at a reoffer price of 98.25, in line with discount talk of 1 to 2 points.
When interest payments are made in cash, the coupon is 10 5/8% and the yield is 11.09%. That yield is slightly tighter than the price talk that was set in the 11¼% area.
With respect to PIK interest payments, the coupon is 11 3/8% and the PIK yield is 11.749%.
Bank of America Merrill Lynch, UBS Investment Bank and Wells Fargo Securities were the joint bookrunners for the issue, which was upsized from $225 million.
Co-managers were PNC Capital Markets LLC, RBS Securities Inc. and SunTrust Robinson Humphrey Inc.
The Jeffersonville, Ind.-based shipping and transportation services provider will use the proceeds to fund a special dividend to redeem equity advanced in connection with the acquisition of American Commercial Lines by certain affiliates of Platinum Equity.
| Issuer: | ACL I Corp. (American Commercial Lines Inc.)
|
| Amount: | $250 million, increased from $225 million
|
| Proceeds: | $245,625,000
|
| Maturity: | Feb. 15, 2016
|
| Securities: | Senior PIK toggle notes
|
| Bookrunners: | Bank of America Merrill Lynch, UBS Investment Bank, Wells Fargo Securities
|
| Co-managers: | PNC Capital Markets LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc.
|
| Cash coupon: | 10 5/8%
|
| PIK coupon: | 11 3/8%
|
| Price: | 98.25
|
| Cash yield: | 11.09%
|
| PIK yield: | 11.749%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2013, then callable at a premium
|
| Equity clawback: | 35% at 110.625 until Feb. 15, 2013
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 11¼% area including 1-2 points OID
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
