Published on 5/24/2016 in the Prospect News High Yield Daily.
New Issue: Iron Mountain prices $750 million of five-, 10-year senior notes
By Paul A. Harris
Portland, Ore., May 24 – Iron Mountain Inc., in conjunction with Iron Mountain US Holdings, Inc., priced $750 million of senior notes in two tranches (existing ratings Ba3/BB-) on Tuesday, according to a syndicate source.
The deal included $500 million of five-year notes, which priced at par to yield 4 3/8%. The yield printed at the tight end of yield talk in the 4½% area.
In addition Iron Mountain priced $250 million of 10-year notes at par to yield 5 3/8%. The yield printed at the tight end of yield talk in the 5½% area.
Left physical bookrunner Goldman Sachs & Co. will bill and deliver. BofA Merrill Lynch and J.P. Morgan Securities LLC were also joint physical bookrunners.
Barclays, Wells Fargo Securities LLC, Credit Agricole CIB, HSBC, Morgan Stanley & Co. LLC and Citizens Securities Inc. were joint bookrunners.
The Boston-based information management services provider plans to use the proceeds, together with cash on hand and borrowings under its revolver, to pay off the bridge credit agreement related to the acquisition of Recall Holdings Ltd.
| Issuers: | Iron Mountain Inc. and Iron Mountain Holdings, Inc.
|
| Amount: | $750 million
|
| Securities: | Senior notes
|
| Left physical bookrunner: | Goldman Sachs & Co. (bill and deliver)
|
| Joint bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC (joint physical books), Barclays, Wells Fargo Securities LLC, Credit Agricole CIB, HSBC, Morgan Stanley & Co. LLC, Citizens Securities, Inc.
|
| Co-managers: | PNC Capital Markets, MUFG, SunTrust Robinson Humphrey Inc.
|
| Trade date: | May 24
|
| Settlement date: | May 27
|
| Existing ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | June 1, 2021
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Call protection: | Two years
|
| Price talk: | 4½% area
|
|
|
| 10-year notes
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| Amount: | $250 million
|
| Maturity: | June 1, 2026
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Call protection: | Five years
|
| Price talk: 5 ½% area
|
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