Ingram Micro talks $2 billion eight-year secured notes at 4¾% area; pricing Wednesday

By Paul A. Harris

Portland, Ore., March 30 – Ingram Micro Inc. talked its $2 billion offering of eight-year senior secured notes (B1//BB) to yield in the 4¾% area, according to market sources.

Official talk comes tight to early guidance in the high 4% area.

Books close at 1 p.m. ET on Wednesday, and deal is set to price thereafter.

The syndicate of dealers includes BofA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Wells Fargo Securities LLC, BMO Capital Markets Corp., MUFG, PNC Capital Markets LLC, Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc., ING Financial Markets LLC, SG Americas Securities LLC and Stifel Nicolaus & Co. Inc.

The notes become callable after three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period. The notes also feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The issuing entity is special purpose vehicle Imola Merger Corp.

Proceeds plus cash on hand, an equity investment and certain borrowings under new credit facilities will be used to help fund the acquisition of Ingram Micro by Platinum Equity and to fund refinancing.

Ingram Micro is an Irvine, Calif.-based distributor of information technology products and services.

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