By Paul A. Harris
Portland, Ore., Sept. 21 – AM General priced a $600 million issue of eight-year senior secured notes (B2/B+) at par to yield 9½% on Monday, according to market sources.
The yield printed in the middle of yield talk in the 9½% area. Initial guidance was in the high 9% area to 10%.
Investors appeared to take the view that with a 9½% coupon at par the issuer left some value on the table: the notes traded to 102 bid, 103 offered late Monday afternoon, in spite of a Monday sell-off that took the broad market down around ¼ of a point, a trader said.
Deutsche Bank Securities Inc. was the left lead bookrunner.
The notes were sold via PM General Purchaser LLC.
Proceeds will be used to support the acquisition of the South Bend, Ind.-based heavy vehicle and contract automotive manufacturer by affiliates of KPS Capital Partners.
| Issuer: | PM General Purchaser LLC
|
| Amount: | $600 million
|
| Maturity: | Oct. 1, 2028
|
| Securities: | Senior secured notes
|
| Left lead bookrunner: | Deutsche Bank Securities Inc.
|
| Joint bookrunners: | UBS Securities LLC, BNP Paribas Securities Corp. and Nomura Securities International Inc.
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 899 bps
|
| First call: | Oct. 1, 2023 at 104.75
|
| Trade date: | Sept. 21
|
| Settlement date: | Oct. 1
|
| Ratings: | Moody’s: B2
|
| S&P: B+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 9½% area
|
| Marketing: | Roadshow
|
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