INTL FCStone withdraws $350 million secured notes offering, cites unfavorable market conditions

By Paul A. Harris

Portland, Ore., Oct. 30 – INTL FCStone Inc. cited unfavorable market conditions as it withdrew its $350 million offering of five-year senior secured notes (Ba3/BB-) on Tuesday, according to a company press release.

The deal was marketed on a high-yield roadshow during the Oct. 22 week, at the conclusion of which came official price talk of 8½% to 8¾% including an original issue discount.

Official talk came tight to initial guidance in the mid-to-high 8% area, market sources said.

“The current volatility in the markets is not conducive to our completing an offering on terms that are acceptable to us,” the company's chief executive officer, Sean O’Connor, stated in the Tuesday press release.

“We have the flexibility to be opportunistic about the timing of such an offering and we will review our decision as and when market conditions regain stability,” O’Connor added.

BMO Capital Markets Corp., BofA Merrill Lynch, Jefferies LLC and Capital One Securities Inc. were the joint bookrunners.

The New York-based financial services provider had planned to use the proceeds to pay off INTL’s revolving credit facilities and to repay debt of INTL's operating subsidiaries, including committed and uncommitted credit facilities.

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