By Paul A. Harris
St. Louis, Jan. 30 - Indalex Aluminum Solutions priced a downsized and restructured $270 million issue of 11½% eight-year second-lien notes (B3/B-) at 98.727 on Monday to yield 11¾%, according to a market source.
The yield came 50 basis points beyond the wide end of the 11% to 11¼% price talk.
JP Morgan had the books for the notes, which were sold via Rule 144A with registration rights and via Regulation S. Harris Nesbitt, Credit Suisse, Morgan Joseph and Piper Jaffray were the co-managers.
Proceeds will be used to fund the leveraged buyout of the company by Sun Capital Partners, Inc.
The issue was downsized from $280 million, with the company funding the $10 million difference by drawing upon its asset-backed revolving credit facility. Second-lien security was added to the notes, which were initially marketed with a senior unsecured structure. A proposed floating-rate tranche was abandoned.
The issuer is a Mississauga, Ont.-based aluminum extrusion company.
| Issuer: | Indalex Aluminum Solutions
|
| Amount: | $270 million (decreased from $280 million)
|
| Maturity: | Feb. 1, 2014
|
| Security description: | Second-lien notes (restructured from senior unsecured notes; proposed floating-rate note tranche abandoned)
|
| Bookrunner: | JP Morgan
|
| Co-managers: | Harris Nesbitt, Credit Suisse, Morgan Joseph, Piper Jaffray
|
| Coupon: | 11½%
|
| Price: | 98.727
|
| Yield: | 11¾%
|
| Spread: | 725 basis points
|
| Call features: | Callable after Feb. 1, 2010 at 108.625, 102.875, par on and after Feb. 1, 2012
|
| Equity clawback: | Until Feb. 1, 2009 for 35% at 111.50
|
| Trade date: | Jan. 30
|
| Settlement date: | Feb. 2
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 11%-11¼%
|
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