New Issue: Radio Systems prices $625 million five-year notes at par to yield 6¾%

By Paul A. Harris

Portland, Ore., June 18 – Radio Systems Corp. priced $625 million offering of CD&R Smokey Buyer, Inc. five-year senior secured notes (B2/B) at par to yield 6¾% on Wednesday, according to a syndicate source.

The yield printed 12.5 basis points inside of yield talk in the 7% area.

UBS Securities LLC was the left lead bookrunner. Fifth Third Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Mizuho Securities USA Inc. and Natixis Securities Americas LLC were the joint bookrunners.

Proceeds will be used to fund the buyout of the Knoxville, Tenn.-based designer and distributor of companion pet health and safety products by Clayton, Dubilier & Rice.

Issuer:	CD&R Smokey Buyer, Inc.
Amount:	$625 million
Maturity:	July 15, 2025
Securities:	Senior secured notes
Bookrunners:	UBS Securities LLC, Fifth Third Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Mizuho Securities USA LLC and Natixis Securities Americas LLC
Coupon:	6¾%
Price:	Par
Yield:	6¾%
First call:	July 15, 2022 at 103.375
Special call:	Issuer may call 10% of notes annually at 103 during the non-call period
Regulatory facility call:	Up to 40% of the notes at 103.375 prior to the 120th day following with the proceeds from any regulatory debt facility
Equity clawback:	40% at 106.75 until July 15, 2022
Trade date:	June 17
Settlement date:	July 1
Ratings:	Moody's: B2
	S&P: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	7% area
Marketing:	Roadshow

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