Published on 4/21/2006 in the Prospect News High Yield Daily.
New Issue: Sensata prices downsized $750 million equivalent two-part note sale
By Paul A. Harris
St. Louis, April 21 - Sensata Technologies BV priced a downsized $750 million equivalent two-part high-yield notes transaction on Friday, according to a market source.
The Attleboro, Mass., supplier of engineered sensors and controls priced a $450 million issue of eight-year senior notes (B2/B-) at par to yield 8%, at the tight end of the 8% to 8¼% price talk.
The company also priced a €245 million issue of 10-year senior subordinated notes (Caa1/B-) at par to yield 9%, again at the tight end of the price talk, which was 9% to 9¼% for the subordinated tranche.
Morgan Stanley, Banc of America Securities LLC and Goldman Sachs & Co. were joint bookrunners for the Rule 144A with registration rights transaction.
Proceeds will be used to help fund the $3 billion acquisition of the Texas Instruments Sensors & Controls business by Bain Capital LLC. Bain is also providing $975 million in equity.
The bond financing was decreased to $750 million from $900 million, with $150 million shifted to the company's term loan.
| Issuer: | Sensata Technologies BV
|
| Amount: | $750 million equivalent (decreased from $900 million)
|
| Bookrunners: | Morgan Stanley, Banc of America Securities LLC, Goldman Sachs & Co.
|
| Trade date: | April 21
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| Settlement date: | April 27
|
| Distribution: | Rule 144A with registration rights
|
|
|
| Senior notes
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| Amount: | $450 million
|
| Maturity: | May 1, 2014
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| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 300 bps
|
| Call features: | Callable after May 1, 2010 at 104, 102, par on and after May 1, 2012
|
| Equity clawback: | Until May 1, 2009 for 40% at 108.0
|
| Ratings: | Moody's: B2
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| Standard & Poor's: B-
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| Price talk: | 8%-8¼%
|
|
|
| Senior subordinated notes
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| Amount: | €245 million
|
| Maturity: | May 1, 2016
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| Coupon: | 9%
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| Price: | Par
|
| Yield: | 9%
|
| Spread: | 509 bps
|
| Call features: | Callable on and after May 1, 2011 at 104.50, 103.0, 101.50, par on and after May 1, 2014
|
| Equity clawback: | Until May 1, 2009 for 40% at 109.0
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 9%-9¼%
|
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