Tervita to sell $500 million five-year secured second-lien notes; initial guidance 10% area yield

By Abigail W. Adams

Portland, Me., Nov. 9 – Tervita Corp. plans to price $500 million of five-year senior secured second-lien notes on Thursday, according to a market source.

Initial guidance has the notes coming with a yield of 10% and a discounted offer price of 98, according to a market source.

The notes are non-callable for two years. There is a special redemption of up to 20% of the principal amount for the first year at par plus 50% of the coupon.

Deutsche Bank Securities Inc. (lead left), Barclays, CIBC World Markets Corp. and TD Securities (USA) LLC are joint bookrunners for the Rule 144A for life offering.

BMO Capital Markets Corp., Scotiabank, ATB Capital Markets, HSBC and Jefferies LLC are co-managers.

The notes carry a poison put of 101 and an equity clawback for up to 40% of the notes for the first two years.

Proceeds will be used to refinance debt.

Tervita is a Calgary, Alta.-based waste and environmental solutions company.

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