New Issue: Iron Mountain sells upsized $600 million, downsized C$200 million notes

By Aleesia Forni

Virginia Beach, Va., Aug. 8 - Iron Mountain Inc. and Iron Mountain Canada Operations ULC priced a two-part offering that included an upsized tranche of $600 million of senior notes (Ba1/BB-/) and downsized tranche of C$200 million senior unsecured notes (Ba1/BB-/) on Thursday, according to an informed source.

The dollar tranche was upsized from $450 million, while the Canadian dollar tranche was downsized from C$300 million.

Both tranches priced at the wide end of talk.

Iron Mountain Inc. sold $600 million 6% senior notes due 2023 at par.

Meanwhile, Iron Mountain Canada Operations priced C$200 million 6¼% senior notes due 2021 at par.

Proceeds will be used to redeem Iron Mountain Canada Operations' outstanding Canadian dollar-denominated 7½% senior subordinated notes due 2017 and Iron Mountain's 8% dollar-denominated senior subordinated notes due 2018 and 8% dollar senior subordinated notes due 2020.

The company will also use proceeds to fund the purchase of up to $137.5 million of the 8 3/8% notes under a tender offer.

Remaining proceeds will be used to repay debt under the company's revolving credit facility and for general corporate purposes.

Wells Fargo Securities LLC is the left bookrunner, while BofA Merrill Lynch, J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc., HSBC Securities, Morgan Stanley & Co. LLC and RBS Securities Inc. are the joint bookrunners for the dollar tranche.

For the Canadian dollar notes, Scotiabank is the left bookrunner, and BofA Merrill Lynch, JPMorgan, Barclays and TD Securities are the joint bookrunners.

Iron Mountain is a Boston-based provider of information management services.

Issuers:	Iron Mountain Inc., Iron Mountain Canada Operations ULC
Trade date:	Aug. 8
Settlement date:	Aug. 13
Marketing:	Quick to market
Ratings:	Moody's: Ba1
	Standard & Poor's: BB-
10-year notes
Issuer:	Iron Mountain Inc.
Face amount:	$600 million, increased from $450 million
Securities:	Senior notes
Maturity:	Aug. 15, 2023
Left bookrunner:	Wells Fargo Securities LLC
Joint bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc., HSBC Securities, Morgan Stanley & Co. LLC, RBS Securities Inc.
Co-managers:	Evercore, Barclays, PNC Capital Markets LLC
Coupon:	6%
Price:	Par
Yield:	6%
Spread:	341 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Aug. 15, 2018, then callable at 103, 102, 101 and par on or after Aug. 15, 2021
Equity clawback:	A portion of the outstanding notes at 106 until Aug. 15, 2016, provided at least $390 million of notes remain outstanding immediately thereafter
Price talk:	5¾% to 6%
Eight-year notes
Issuer:	Iron Mountain Canada Operations ULC
Face amount:	C$200 million, reduced from C$300 million
Securities:	Senior unsecured notes
Maturity:	Aug. 15, 2021
Left bookrunner:	Scotiabank
Joint bookrunners:	BofA Merrill Lynch, JPMorgan, Barclays, TD Securities
Co-managers:	Evercore, Morgan Stanley, PNC Capital Markets LLC, RBS Securities, Wells Fargo
Coupon:	6¼%
Price:	Par
Yield:	6¼%
Call features:	Make-whole call at Government of Canada rate plus 50 bps until Aug. 15, 2017, then callable at 103.063, 101.531 and par after Aug. 15, 2019
Equity clawback:	A portion of the notes at 106.125 until Aug. 15, 2016, provided at least C$130 million of notes remains outstanding immediately thereafter
Price talk:	6% to 6¼%

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