By Paul A. Harris
Portland, Ore., Jan. 18 – IRB Holding Corp., also known as Arby’s Restaurant Group, Inc., priced a $485 million issue of eight-year senior notes (Caa1/CCC+) at par to yield 6¾% on Thursday, according to a market source.
The yield printed at the tight end of the 6¾% to 7% yield talk.
Barclays was the left bookrunner. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the joint bookrunners.
The Atlanta-based quick-service restaurant chain plans to use the proceeds, along with a $1.58 billion term loan, to help fund its pending acquisition of Buffalo Wild Wings Inc.
Prior to the closing of the acquisition the proceeds will be escrowed. A special redemption at par plus accrued interest would come into effect during the escrow period if the acquisition is not completed.
| Issuer: | IRB Holding Corp.
|
| Amount: | $485 million
|
| Maturity: | Feb. 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 416 bps
|
| First call: | Feb. 15, 2021 at 103.375
|
| Equity clawback: | 40% at 106.75 until Feb. 15, 2021
|
| Trade date: | Jan. 18
|
| Settlement date: | Feb. 5
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Roadshow
|
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