Published on 9/4/2019 in the Prospect News High Yield Daily.
New Issue: Iron Mountain sells upsized $1 billion 10-year notes at par to yield 4 7/8%
By Cristal Cody
Tupelo, Miss., Sept. 4 – Iron Mountain Inc. priced an upsized $1 billion of 10-year guaranteed senior notes (Ba3/BB-) at par to yield 4 7/8% on Wednesday, according to a market source and a news release.
Initial price talk was in the 4 7/8% to 5% area.
The notes came at a spread of 342 basis points over Treasuries.
The Rule 144A and Regulation S offering was upsized twice, from $800 million and from $600 million.
Barclays, Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC and Wells Fargo Securities, LLC were the bookrunners.
The issue is guaranteed by the company’s subsidiaries that guarantee each series of its existing notes.
Proceeds will be used to repay outstanding borrowings under the company’s revolving credit facility.
Iron Mountain is a Boston-based information management services company.
| Issuers: | Iron Mountain Inc.
|
| Guarantors: | Company subsidiaries that guarantee its existing notes
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Maturity: | Sept. 15, 2029
|
| Bookrunners: | Barclays, Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC and Wells Fargo Securities, LLC
|
| Co-managers: | HSBC Securities (USA) Inc., MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc. and TD Securities (USA) LLC
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | Treasuries plus 342 bps
|
| Call features: | Make-whole call before Sept. 15, 2024 at Treasuries plus 50 bps; on or after Sept. 15, 2024 at 102.438, Sept. 15, 2025 at 101.609; Sept. 15, 2026 at 100.814 and Sept. 15, 2027 and thereafter at par
|
| Change-of-control put: | 101%
|
| Equity clawback: | Up to 40% of notes at 104.875 before Sept. 15, 2022, provided at least 50% of notes remains outstanding
|
| Trade date: | Sept. 4
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| Settlement date: | Sept. 9
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| Ratings: | Moody’s: Ba3
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| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Global investor calls
|
| Price guidance: | 4 7/8%-5% area
|
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