By Paul A. Harris
Portland, Ore., May 28 – INTL FCStone Inc. priced a $350 million issue of 8 5/8% five-year senior secured notes (Ba3/BB-) at 98.5 to yield 9% on Thursday, according to market sources.
Jefferies LLC was the bookrunner.
The coupon came 12.5 basis points through the 8¾% to 9% coupon talk. The price came rich to discount talk in the 2 points area. The yield came 25 bps inside of 9¼% to 9½% guidance.
The deal was heard to be playing to $1.5 billion of orders on Thursday morning, a trader said.
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.
| Issuer: | INTL FCStone Inc.
|
| Amount: | $350 million
|
| Maturity: | June 15, 2025
|
| Securities: | Senior secured notes
|
| Bookrunner: | Jefferies LLC
|
| Coupon: | 8 5/8%
|
| Price: | 98.5
|
| Yield: | 9%
|
| First call: | June 15, 2022 at 104.313
|
| Trade date: | May 28
|
| Settlement date: | June 11
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% to 9% coupon with OID in 2 points area
|
| Marketing: | Roadshow
|
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