By Paul A. Harris
Portland, Ore., Aug. 11 – RingCentral Inc. priced a $400 million issue of seven-year senior notes (B1/BB/BB) at par to yield 8½% on Friday, according to market sources.
The yield printed at the tight end of yield talk and initial guidance, both of which had been set at 8½% to 8¾%.
The issue was heard to be playing to $500 million of demand on Friday morning, a trader said.
Timing was accelerated. When announced, the deal had been scheduled to remain in the market into the week ahead.
J.P. Morgan Securities LLC, BofA Securities, Inc., Wells Fargo Securities LLC, TD Securities (USA) LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
A portion of the proceeds will be used to repurchase and/or repay a portion of the company’s outstanding convertible notes, with the remainder to be used for general corporate purposes which may include working capital, capital expenditures, debt repurchases or repayments, potential strategic transactions and acquisitions.
RingCentral is a Belmont, Calif.-based provider of cloud-based communication and collaboration products and services for businesses.
| Issuer: | Ring Central Inc.
|
| Amount: | $400 million
|
| Maturity: | Aug. 15, 2030
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., Wells Fargo Securities LLC, TD Securities (USA) LLC, Morgan Stanley & Co. LLC
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | Treasuries plus 427 bps
|
| First call: | Aug. 15, 2026 at 104.25
|
| Trade date: | Aug. 11
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody’s: B1
|
| S&P: BB
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% to 8¾%
|
|
|
© 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.
