By Paul A. Harris
Portland, Ore., Jan. 15 - Wells Enterprises, Inc. priced a $235 million issue of seven-year senior secured notes (B2/B+/) at par to yield 6¾% on Tuesday, according to an informed source.
The yield printed at the tight end of the 6¾% to 7% yield talk.
BMO Capital Markets Corp. was the left bookrunner, and Wells Fargo Securities LLC was the joint bookrunner.
The notes have make-whole call protection at a premium of Treasuries plus 50 basis points until Feb. 1, 2016, after which they become callable at 105.063. However a special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.
The Le Mars, Iowa-based ice cream maker plans to use the proceeds to refinance debt, as well as to fund a dividend and for general corporate purposes, including capital expenditures.
| Issuer: | Wells Enterprises, Inc.
|
| Amount: | $235 million
|
| Maturity: | Feb. 1, 2020
|
| Securities: | Senior secured notes
|
| Left bookrunner: | BMO Capital Markets Corp.
|
| Joint bookrunner: | Wells Fargo Securities LLC
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2016, then callable at 105.063, 103.375, 101.688, par on and after Feb. 1, 2019
|
| Special call: | Issuer may redeem 10% of the notes annually at 103 during the non-call period
|
| Equity clawback: | 35% at 106.75 until Feb. 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 15
|
| Settlement date: | Jan. 18
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Roadshow
|
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