By Paul A. Harris
Portland, Ore., April 3 - Michael Baker Holdings, LLC and Michael Baker Finance Corp. priced an upsized $150 million issue of senior PIK toggle notes (Caa1/B-/) at 99 to yield 9.127% on Thursday, according to an informed source.
The notes pay a cash coupon of 8 7/8% and a PIK coupon of 9 5/8%.
The deal was upsized from $125 million.
The cash coupon came at the tight end of the 9% cash coupon talk. The reoffer price came on top of price talk.
Jefferies LLC was the arranger.
Proceeds will be used to fund a dividend to DC Capital Partners. Integrated Mission Solutions, LLC, an affiliate of DC Capital, acquired Michael Baker in October 2013.
Michael Baker is a Moon Township, Pa.-based provider of high-end engineering, development, intelligence and technology solutions.
| Issuers: | Michael Baker Holdings, LLC and Michael Baker Finance Corp.
|
| Amount: | $150 million, increased from $125 million
|
| Maturity: | April 15, 2019
|
| Securities: | Senior PIK toggle notes
|
| Arranger: | Jefferies LLC
|
| Cash coupon: | 8 7/8%
|
| PIK coupon: | 9 5/8%
|
| Price: | 99
|
| Yield: | 9.127%
|
| Price talk: | 9% cash coupon at 99
|
| First call: | April 15, 2016 at 102
|
| Equity clawback: | 40% at 105 until April 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | April 3
|
| Settlement date: | April 8
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
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