By Paul A. Harris
St. Louis, April 27 - Triad Acquisition Corp. priced a downsized and restructured $150 million issue of 11 1/8% eight-year senior notes (B3/B-) at 99.35 to yield 11¼%, according to an informed source.
The notes priced at the wide end of the 11% to 11¼% price talk, which had been upwardly revised from 10¼% to 10½%.
One year of call protection was added to the bond, making it non-callable for five years, increased from the former four-year call protection.
Goldman Sachs had the physical books for the Rule 144A/Regulation S with registration rights offering. JP Morgan and Lehman Brothers were joint bookrunners. The co-managers were ABN Amro and Wachovia Securities.
Proceeds will be used to help fund the buyout of the company by Goldman Sachs Capital Partners, Hunters Glen and GTCR Golder Rauner from Ford Motor Co.
The issue was downsized from $200 million.
The issuer is Triad Acquisition Corp. which is being merged with and into Triad Financial Corp. The surviving entity is Triad Financial Corp., a Huntington Beach, Calif., lender to sub-prime borrowers.
| Issuer: | Triad Acquisition Corp. (Triad Financial)
|
| Amount: | $150 million (decreased from $200 million)
|
| Maturity: | May 1, 2013
|
| Security description: | Senior notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Joint-lead manager: | Citigroup
|
| Coupon: | 11 1/8%
|
| Price: | 99.35
|
| Yield: | 11¼%
|
| Spread: | 719 basis points
|
| Call features: | Callable after May 1, 2010 at 107.0, 103.50, par on and after May 1, 2012 (call protection extended to five years from four years)
|
| Equity clawback: | Until May 1, 2008 for 35% at 111.125
|
| Trade date: | April 27
|
| Settlement date: | April 29
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 11%-11¼% (revised from 10¼%-10½%)
|
|
|
© 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.
