By Paul A. Harris
Portland, Ore., May 24 – Tervita Corp. priced a $250 million add-on to its 7 5/8% senior secured notes due Dec. 1, 2021 (B2/B) at 100.5 to yield 7.46% on Thursday, according to a market source.
The reoffer price came at the rich end of the 100 to 100.5 price talk and rich to early guidance in the par area.
Deutsche Bank Securities Inc. and TD Securities were the joint bookrunners.
The Calgary, Alta.-based environmental management company for the oil and gas industry plans to use the proceeds to fund the refinancing of Newalta's existing debt in connection with the acquisition of Newalta shares and the merger of Tervita and Newalta into an entity to be called Amalco.
| Issuer: | Tervita 2018 Escrow Corp
|
| Amount: | $250 million
|
| Maturity: | Dec. 1, 2021
|
| Security description: | Add-on to 7 5/8% senior secured notes due Dec. 1, 2021
|
| Bookrunners: | Deutsche Bank Securities Inc., TD Securities
|
| Coupon: | 7 5/8%
|
| Price: | 100.5
|
| Yield: | 7.46%
|
| Spread: | 474 bps
|
| First call date: | Dec. 1, 2018
|
| Trade date: | May 24
|
| Settlement date: | June 1
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A for life
|
| Price talk: | 100 to 100.5
|
| Marketing: | Roadshow
|
| Original issue: | $350 million priced at par in December 2016
|
| Total issue size: | $600 million
|
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