Denmark's ISS issues talk on upsized, restructured €1.109 billion two-part note offering

By Paul A. Harris

St. Louis, April 26 - FS Funding AS, a subsidiary of Denmark-based global facilities services provider ISS, issued price talk on an upsized and restructured €1.109 billion two-part offering of 10-year senior subordinated notes (B3/B-) on Wednesday, according to a market source.

Pricing is expected on Thursday.

The company is talking a tranche of fixed-rate notes at the 9% area. The notes will come with five years of call protection.

Meanwhile the company is talking a tranche of floating-rate notes at Euribor plus 700 basis points. The floating-rate notes will be callable immediately at 101.

Citigroup and Goldman Sachs & Co. are joint bookrunners for the notes, which are being offered via Rule 144A and Regulation S.

Tranche sizes remain to be determined; however, an approximately 50-50 split between the fixed-rate and floating-rate tranches is anticipated.

The offering was upsized from €975 million. However a proposed dollar-denominated tranche was abandoned.

Proceeds will be used to repay the bridge loan that was incurred to fund the acquisition of the company by EQT Partners and GS Capital Partners. The additional proceeds, which are expected to be generated by the upsizing, will be used to redeem the company's €134 million of PIK notes.

The financing also includes a DKK 9.675 billion credit facility and DKK 7.963 billion of sponsor equity.

The company is based in Copenhagen, Denmark

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