INTL FCStone talks $350 million five-year notes with 8¾%-9% coupon, around 2 points OID

By Paul A. Harris

Portland, Ore., May 28 – INTL FCStone Inc. talked its $350 million offering of five-year senior secured notes (Ba3/BB-) with an 8¾% to 9% coupon at about 2 points of original issue discount, implying a yield of 9¼% to 9½%, according to market sources.

The deal, which is talked in line with initial price talk, is heard to be playing to $1.5 billion of orders, a trader said.

Books close at 1 p.m. ET on Thursday, and the Rule 144A and Regulation S for life deal is set to price thereafter. Timing is accelerated; the deal was originally announced as Friday business.

Jefferies LLC has the books.

The notes come with two years of call protection. They also feature a regulatory capital put/call feature: Upon the earlier of the business combination of U.K.-registered subsidiaries regulated by the FCA and the one year anniversary of the issue date, the company may redeem – or bondholders may require the company to repurchase – up to $100 million of the notes at 103.

The New York-based financial services company plans to use the proceeds to fund its acquisition of Gain Capital Holdings, Inc., including the redemption of Gain Capital's convertible notes.

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