By Andrea Heisinger
New York, Feb. 23 - Wyndham Worldwide Corp. priced $250 million of split-rated 5.625% 10-year notes on Wednesday to yield 225 basis points over Treasuries, a market source said.
Whispered price talk was in the 250 bps area and then revised down to 237.5 bps, a source said.
The notes (Ba1/BBB-/) were sold at 99.134 to yield 5.74%.
The notes have a make-whole call at Treasuries plus 35 bps and feature a change-of-control put at 101% if the company's credit ratings drop to below investment grade.
Bank of America Merrill Lynch, Credit Suisse Securities LLC and J.P. Morgan Securities LLC were the bookrunners.
Lead managers were Deutsche Bank Securities Inc., Goldman Sachs & Co., RBS Securities Inc. and Scotia Capital USA Inc.
Nab Securities LLC, Mitsubishi UFJ Securities USA Inc., U.S. Bancorp Investments Inc., BBVA Securities Inc. and SMBC Nikko Capital Markets Ltd. were the co-managers.
Proceeds are being used to reduce debt, including the repurchase of $115.78 million of 3.5% convertible notes due 2012 in a tender offer, for the repayment of borrowings under a revolving credit facility and for general corporate purposes.
The hospitality company is based in Parsippany, N.J.
| Issuer: | Wyndham Worldwide Corp.
|
| Issue: | Notes
|
| Amount: | $250 million
|
| Maturity: | March 1, 2021
|
| Bookrunners: | Bank of America Merrill Lynch, Credit Suisse Securities LLC, J.P. Morgan Securities LLC
|
| Lead managers: | Deutsche Bank Securities Inc., Goldman Sachs & Co., RBS Securities Inc., Scotia Capital USA Inc.
|
| Co-managers: | Nab Securities LLC, Mitsubishi UFJ Securities USA Inc., U.S. Bancorp Investments Inc., BBVA Securities Inc., SMBC Nikko Capital Markets Ltd.
|
| Coupon: | 5.625%
|
| Price: | 99.134
|
| Yield: | 5.74%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Change-of-control put: | 101% if ratings drop below investment grade
|
| Trade date: | Feb. 23
|
| Settlement date: | March 1
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Price talk: | 250 bps area (whispered), 237.5 bps (revised)
|
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