By Paul A. Harris
St. Louis, Jan. 28 - Inergy Finance Corp. priced an upsized $225 million issue of 8¾% six-year senior notes (B1/B+/) at 90.191 to yield 11% in a quick-to-market Wednesday transaction, according to an informed source.
The yield came at the tight end of the 11% to 11¼% yield talk, while the coupon came in line with coupon talk in the 8% range.
J.P. Morgan Securities Inc., Banc of America Securities LLC and Wachovia Securities LLC were joint bookrunners for the notes, which were issued via Rule 144A with registration rights.
Proceeds will be used to repay borrowings under the company's revolving acquisition credit facility.
The issuer is a Kansas City, Mo., owner and operator of a retail and wholesale propane marketing and distribution business.
| Issuer: | Inergy Finance Corp.
|
| Amount: | $225 million, upsized from $200 million
|
| Proceeds: | $202.93 million (approximate)
|
| Maturity: | March 1, 2015
|
| Security description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Banc of America Securities LLC, Wachovia Securities LLC (joint)
|
| Coupon: | 8¾%
|
| Price: | 90.191
|
| Yield: | 11%
|
| Spread: | 915 bps
|
| Call protection: | Callable on March 1, 2013 at 104.375
|
| Equity clawback: | Until March 1, 2012 for 35% at 108.75
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 28
|
| Settlement date: | Feb. 2
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution | Rule 144A with registration rights
|
| Price talk: | 8%-range coupon at a discount to yield 11% to 11¼%
|
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