By Paul A. Harris
Portland, Ore., May 1 – AssuredPartners, Inc. priced a $475 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 8% on Wednesday, according to market sources.
The yield printed 12.5 basis points tighter than price talk in the 8¼% area and well inside of initial guidance in the mid-to-high 8% area, sources said.
BofA Merrill Lynch was the left bookrunner.
The issuing entity will be GTCR (AP) Finance Inc., which is to be merged with and into AssuredPartners, a Louisville-based insurance brokerage.
Proceeds, together with cash on hand and proceeds from the sale of TopCo preferred equity, common equity contributions and common equity rollover contributions, will be used to finance the acquisition of AssuredPartners by an investment group led by GTCR LLC, and to repay bank debt.
| Issuer: | GTCR (AP) Finance Inc., to be merged with and into AssuredPartners
|
| Amount: | $475 million
|
| Maturity: | May 15, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Barclays, JPMorgan, Morgan Stanley, BMO, RBC, Deutsche Bank, Macquarie and ING
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 556 bps
|
| Call protection: | Three years
|
| Trade date: | May 1
|
| Settlement date: | May 13
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¼% area
|
| Marketing: | Roadshow
|
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