By Paul A. Harris
Portland, Ore., Oct. 23 – Aspen Insurance priced a $500 million issue of Highlands Holdings Bond Issuer, Ltd. and Highlands Holdings Bond Co-Issuer, Inc. five-year senior secured PIK toggle notes (BB+/BB) at par with a cash yield of 7 5/8% on Friday, according to a syndicate source.
The notes have a 7 5/8% cash coupon, which steps up by 75 basis points, to 8 3/8% for PIK coupon payments.
The cash yield printed at the tight end of talk in the 7¾% area.
Jefferies International Ltd. and Goldman Sachs & Co. LLC were the joint global coordinators and joint bookrunners.
The Hamilton, Bermuda-based property and casualty insurance and reinsurance company plans to use the proceeds to provide additional capital to its operating group, to fund a distribution and to pay for the initial period’s interest expense.
Issuers: | Highlands Holdings Bond Issuer, Ltd. and Highlands Holdings Bond Co-Issuer, Inc.
|
Amount: | $500 million
|
Maturity: | Oct. 15, 2025
|
Securities: | Senior secured PIK toggle notes
|
Bookrunners: | Jefferies International Ltd. and Goldman Sachs & Co. LLC
|
Co-manager: | Apollo Global Securities, LLC
|
Cash coupon: | 7 5/8%
|
PIK coupon: | 8 3/8%
|
Price: | Par
|
Cash yield: | 7 5/8%
|
First call: | Oct. 15, 2022 at 103.813
|
Trade date: | Oct. 23
|
Settlement date: | Oct. 28
|
Ratings: | S&P: BB+
|
| Fitch: BB
|
Distribution: | Rule 144A and Regulation S for life
|
Price talk: | 7¾% area cash coupon, 75 bps PIK step-up
|
Marketing: | Roadshow
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.