Published on 10/28/2020 in the Prospect News High Yield Daily.
New Issue: Academy sells $400 million seven-year secured notes at par to yield 6%
By Paul A. Harris
Portland, Ore., Oct. 28 – Academy Ltd. priced a $400 million issue of seven-year senior secured notes (B2/B) at par to yield 6% on Wednesday, according to a syndicate source.
The yield printed at the wide end of the 5¾% to 6% yield talk.
Credit Suisse Securities (USA) LLC is the left lead bookrunner. Joint bookrunners were KKR, J.P. Morgan Securities LLC, BofA Securities Inc., Capital One Securities Inc., Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., RF and BBVA Securities Inc.
The Katy, Tex., sporting goods and outdoor recreation retailer plans to use the proceeds, along with its refinancing term loans and cash on hand, to repay its 2022 term loans.
| Issuer: | Academy Ltd.
|
| Amount: | $400 million
|
| Maturity: | Nov. 15, 2027
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| Securities: | Senior secured notes
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| Left bookrunner: | Credit Suisse Securities (USA) LLC
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| Joint bookrunners: | KKR, J.P. Morgan Securities LLC, BofA Securities Inc., Capital One Securities Inc., Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., RF and BBVA Securities Inc.
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 546 bps
|
| First call: | Nov. 15, 2023 at 103
|
| Equity clawback: | 40% at 103 until Nov. 15, 2023
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| Trade date: | Oct. 28
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| Settlement date: | Nov. 6
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| Ratings: | Moody's: B2
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| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 5¾% to 6%
|
| Marketing: | Roadshow
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