New Issue: Iron Mountain prices $1 billion 12-year notes at par to yield 5¾%

By Paul A. Harris

Portland, Ore., Aug. 7 - Iron Mountain Inc. priced an upsized $1 billion issue of 12-year senior subordinated notes (B1/B+/) at par to yield 5¾% on Tuesday, according to a syndicate source.

The yield, which printed at the tight end of the 5¾% to 6% price talk, is the tightest ever for a single B rated issue, according to the source, who cited information provided by Standard & Poor's and Dealogic.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, HSBC Securities (USA) Inc., RBS Securities Inc., Scotia Capital (USA) Inc. and Barclays were the joint bookrunners for the quick-to-market issue, which was upsized from $950 million.

The Boston-based provider of information management services plans to use the proceeds to redeem all of its outstanding 6 5/8% senior subordinated notes due 2016 and 8¾% senior subordinated notes due 2018, to repay existing debt under its revolver and for general corporate purposes, including funding a portion of the costs it expects to incur in connection with its proposed conversion to a real estate investment trust.

Issuer:	Iron Mountain Inc.
Amount:	$1 billion, increased from $950 million
Maturity:	Aug. 15, 2024
Securities:	Senior subordinated notes
Bookrunners:	Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, HSBC Securities (USA) Inc., RBS Securities Inc., Scotia Capital (USA) Inc., Barclays
Co-managers:	Credit Agricole Securities (USA) Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, EA Markets Securities LLC, Lebenthal & Co., LLC
Coupon:	5¾%
Price:	Par
Yield:	5¾%
Spread:	390 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Aug. 15, 2017, then callable at 102.875, 101.917, 100.958, par on and after Aug. 15, 2020
Equity clawback:	35% at 105.75 until Aug. 15, 2015
Trade date:	Aug. 7
Settlement date:	Aug. 10
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	5¾% to 6%
Marketing:	Quick to market

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.