By Paul A. Harris
Portland, Ore., May 8 - Iracore International Holdings, Inc. priced an upsized $125 million issue of five-year senior secured notes (B3/B/) at par to yield 9½% on Wednesday, according to an informed source.
The deal was upsized from $110 million.
The yield printed at the tight end of the 9½% to 9¾% yield talk.
Jefferies LLC was the bookrunner.
Proceeds, together with $125 million in new equity, will be used to fund the acquisition of the company.
Iracore is a Hibbing, Minn.-based developer and manufacturer of elastomeric coating and buffering solutions primarily used in the Canadian oil sands mining sector and other industrial settings.
| Issuer: | Iracore International Holdings, Inc.
|
| Amount: | $125 million, upsized from $110 million
|
| Maturity: | June 1, 2018
|
| Securities: | Senior secured notes
|
| Bookrunner: | Jefferies LLC
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 1, 2015, then callable at 107.125, 104.75, par on and after June 1, 2017
|
| Equity clawback: | 35% at 109.5 until to June 1, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | May 8
|
| Settlement date: | May 22
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9½% to 9¾%
|
| Marketing: | Roadshow
|
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