Published on 9/20/2011 in the Prospect News High Yield Daily.
New Issue: Iron Mountain sells upsized $400 million 7¾% eight-year notes at par
By Paul A. Harris
Portland, Ore., Sept. 20 - Iron Mountain Inc. priced an upsized $400 million issue of eight-year senior subordinated notes (B1/B+/) at par to yield 7¾% on Tuesday, according to market sources.
The yield printed at the tight end of the 7¾% to 7 7/8% price talk.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays Capital Inc., Bank of America Merrill Lynch, HSBC Securities (USA) Inc., RBS Securities Inc. and Scotia Capital (USA) Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $300 million.
The Boston-based information management services provider plans to use the proceeds for general corporate purposes, including funding a portion of its shareholder payout commitments and possible future acquisitions and investments.
| Issuer: | Iron Mountain Inc.
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | Oct. 1, 2019
|
| Securities: | Senior subordinated notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays Capital Inc., Bank of America Merrill Lynch, HSBC Securities (USA) Inc., RBS Securities Inc., Scotia Capital (USA) Inc.
|
| Co-managers: | Credit Agricole CIB, PNC Capital Markets LLC, TD Securities, Wells Fargo Securities LLC
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 616 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2015, then callable at 103.875, 101.938, par on and after Oct. 1, 2017
|
| Equity clawback: | A portion of the outstanding notes at 107.75 until Oct. 1, 2014, provided at least $260 million of notes (including any additional notes subsequently issued as part of the same class) remain outstanding immediately thereafter until Oct. 1, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 20
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| Settlement date: | Sept. 23
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| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | SEC registered
|
| Price talk: | 7¾% to 7 7/8%
|
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