By Paul A. Harris
Portland, Ore., Nov. 12 – Audatex North America, Inc., a wholly owned subsidiary of Solera Holdings, Inc., priced an upsized $400 million of senior notes (Ba3/BB-/) in two add-on tranches on Wednesday, according to a market source.
The deal included a $175 million add-on to the 6% notes due June 15, 2021, which priced at 104.5 to yield 5.18%, and a $225 million add-on to the 6 1/8% notes due Nov. 1, 2023 which also priced at 104.5, and yield 5.48%.
Both tranches were talked at 104 to 104.5, and thus both came at the rich end of price talk.
The overall deal size was increased from $350 million.
Goldman Sachs & Co. was the bookrunner for the Rule 144A and Regulation S for life deal.
Proceeds, together with cash on hand, will be used to fund an acquisition that the company is in the late stages of negotiating, the price of which could exceed $450 million. In the event that the acquisition is not completed, proceeds will be used for working capital and other general corporate purposes, which may include funding one or more strategic initiatives.
Solera is a Westlake, Texas-based provider of software and services to the automobile insurance claims processing industry.
| Issuer: | Audatex North America, Inc., a wholly owned subsidiary of Solera Holdings, Inc.
|
| Face amount: | $400 million, increased from $350 million
|
| Proceeds: | $418 million
|
| Bookrunner: | Goldman Sachs & Co.
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 17 with accrued interest
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Add-on to 6% notes
|
| Face amount: | $175 million
|
| Proceeds: | $183 million
|
| Issue: | Add-on to senior notes
|
| Maturity: | June 15, 2021
|
| Coupon: | 6%
|
| Price: | 104.5
|
| Yield to maturity: | 5.18%
|
| First call: | June 15, 2017 at 103
|
| Price talk: | 104 to 104.5
|
| Original issue: | $850 million priced par on June 27, 2013
|
| Previous add-on: | $510 million priced at 101.75 to yield 5.631% on Oct. 17, 2013
|
| Fungibility: | Add-on notes will be immediately fungible with the original notes
|
| Total issue size: | $1,535,000,000
|
|
|
| Add-on to 6 1/8% notes
|
| Face amount: | $225 million
|
| Proceeds: | $235 million
|
| Issue: | Add-on to senior notes
|
| Maturity: | Nov. 1, 2023
|
| Coupon: | 6 1/8%
|
| Price: | 104.5
|
| Yield to maturity: | 5.48%
|
| First call: | Nov. 1, 2018 at 103.063
|
| Price talk: | 104 to 104.5
|
| Original issue: | $340 million priced at par on June 27, 2013
|
| Total issue size: | $665 million
|
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