By Paul A. Harris
St. Louis, Jan. 20 - Accellent Inc. priced a $400 million issue of 8 3/8% seven-year senior secured notes (B1/B+/) at 99.349 to yield 8½% on Wednesday, according to an informed source.
The yield printed at the tight end of the 8½% to 8¾% price talk.
Credit Suisse Securities, Wells Fargo Securities and UBS Investment Bank were joint bookrunners.
The notes are secured by a first lien on non-current assets, including plant, property and equipment, and on certain capital stock, and a second lien on all current assets, including accounts receivable and inventory.
Proceeds will be used to refinance bank debt.
Accellent is a Wilmington, Mass.-based provider of outsourced design, engineering and manufacturing of custom components, subassemblies and completed devices primarily for medical device firms.
| Issuer: | Accellent Inc.
|
| Face amount: | $400 million
|
| Proceeds: | $397,396,000
|
| Maturity: | Feb. 1, 2017
|
| Securities: | Senior secured notes
|
| Bookrunners: | Credit Suisse Securities, Wells Fargo Securities, UBS Investment Bank
|
| Coupon: | 8 3/8%
|
| Price: | 99.349
|
| Yield: | 8½%
|
| Spread: | 540 bps
|
| Call features: | Callable on Feb. 1, 2013 at 106.281, 104.188, 102.094, par on and after Feb. 1, 2016
|
| Trade date: | Jan. 20
|
| Settlement date: | Jan. 29
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 8½% to 8¾%
|
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