Iron Mountain talks $850 million 10.5-year notes in 4 5/8% area; pricing Monday

By Paul A. Harris

Portland, Ore., Aug. 10 – Iron Mountain Inc. talked its $850 million offering of senior notes due February 2031 (existing ratings Ba3/BB-) to yield in the 4 5/8% area, according to market sources.

Official talk comes tight to initial guidance in the 4¾% area, a trader said.

Books close at 1:30 p.m. ET on Monday, and the drive-by deal is set to price thereafter.

Joint bookrunner Barclays will bill and deliver. Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Credit Agricole CIB, Morgan Stanley & Co. LLC, MUFG and Wells Fargo Securities LLC are also joint bookrunners.

Citizens Capital Markets Inc., PNC Capital Markets LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Truist Securities Inc. are the co-managers.

The Rule 144A and Regulation S for life 10.5-year notes become callable after 5.5 years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Boston-based enterprise information management services company plans to use the proceeds to redeem all C$250 million of its 5 3/8% senior notes due 2023, €300 million of its 3% senior notes due 2025 and all $250 million of its 5 3/8% senior notes due 2026, with the balance, if any, to be used for general corporate purposes.

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