InterGen ups dollar tranche, yield talk in $900 million equivalent notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., June 7 - InterGen NV shifted proceeds to the dollar-denominated tranche from the sterling-denominated tranche of its $900 million equivalent two-part offering of senior secured notes (B1/B+) and widened the yield talk, market sources said on Friday.

The dollar-denominated 10-year notes tranche was upsized to $750 million from $600 million. Talk widened to the 7¼% area from the 7% area.

The sterling-denominated eight-year notes tranche was downsized to £175 million from £260 million. As before, the sterling-denominated notes are talked to price 25 basis points behind the dollar-denominated notes.

The shift in proceeds also decreases the overall deal size to $900 million equivalent from $1 billion equivalent. Earlier in the week the deal was upsized to $1 billion equivalent from $800 million equivalent.

The notes are expected to price Friday.

Deutsche Bank is the global coordinator. Barclays, BofA Merrill Lynch, Credit Suisse, Mitsubishi UFJ Securities and RBC are the joint bookrunners. Citigroup is a co-manager.

The 10-year notes come with five years of call protection, while call protection for the eight-year notes is four years.

Proceeds, along with new bank debt, will be used to fund the tender offer for the company's 9½% senior secured notes due 2017, its 9% senior secured notes due 2017 and its 8½% senior secured notes due 2017, as well as to repay bank debt and for general corporate purposes.

InterGen is a power generation company.

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