By Paul A. Harris
Portland, Ore., Sept. 9 – Pizza-maker Papa John’s International Inc. became September’s first issuer as it priced its debut junk bond deal, a $400 million issue of eight-year senior notes (B1/BB-) at par to yield 3 7/8%, according to market sources.
The deal, which broke to par ½ bid, 101 offered, was well received by investors, a trader said.
Initial guidance was in the low 4% area.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners.
Concurrently with the closing of the notes, Papa John’s will amend and restate its credit agreement, with JPMorgan Chase Bank, Inc. as administrative agent. Under the amendment, the existing revolver will be increased to $600 million and the maturity will be extended for an additional five-year term.
The Louisville, Ky.-based pizza restaurant franchisee plans to use the proceeds plus the amended revolver to repay bank debt.
| Issuer: | Papa John's International Inc.
|
| Amount: | $400 million
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| Maturity: | Sept. 15, 2029
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Truist Securities Inc. and Wells Fargo Securities LLC
|
| Coupon: | 3 7/8%
|
| Price: | Par
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| Yield: | 3 7/8%
|
| Call protection: | Three years
|
| Settlement date: | Sept. 14
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
| Guidance: | Low 4% area
|
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