USI driving by with $620 million eight-year notes; initial talk high 7% to 8%

By Paul A. Harris

Portland, Ore., Dec. 14 – USI Inc. plans to price a $620 million offering of eight-year senior notes (current ratings Caa1/CCC+) in a Thursday drive-by following a conference call with investors, according to market sources.

Initial guidance has the deal coming to yield in the high 7% to 8% area, according to a bond trader.

The Rule 144A for life and Regulation S notes come with three years of call protection.

Morgan Stanley & Co. LLC, KeyBanc Capital Markets, BofA Securities, Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Stonepoint, Citigroup Global Markets Inc., ING Financial Markets LLC and Macquarie are the joint bookrunners.

The Valhalla, N.Y.-based insurance brokerage plans to use the proceeds to redeem senior notes that mature in 2025.

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