By Paul A. Harris
Portland, Ore., July 26 – Xerium Technologies, Inc. priced a $480 million issue of 9½% five-year senior secured notes (B2/B) at 98.54 to yield 9 7/8% on Tuesday, according to an informed source.
The yield printed at the tight end of yield talk in the 10% area. The reoffer price came in line with original issue discount talk of 1.5 points.
Official yield talk came well wide of earlier guidance, sources said, adding that the deal was initially in the market with yield guidance of 8¼%.
Jefferies LLC was the left bookrunner. Macquarie Capital (USA) Inc. was the joint bookrunner.
Proceeds will be used to refinance an existing term loan and unsecured notes.
Xerium Technologies is a Raleigh, N.C.-based manufacturer of industrial textiles and rolls used primarily in the paper production process.
| Issuer: | Xerium Technologies, Inc.
|
| Amount: | $480 million
|
| Proceeds: | $472,992,000
|
| Maturity: | Aug. 15, 2021
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Jefferies LLC
|
| Joint bookrunner: | Macquarie Capital (USA) Inc.
|
| Coupon: | 9½%
|
| Price: | 98.54
|
| Yield: | 9 7/8%
|
| Call: | Make-whole at call at Treasuries plus 50 bps until Aug. 15, 2018, then callable at 104.75
|
| Equity clawback: | 35% at 109.5 until Aug. 15, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | July 26
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 10% area, including 1.5 points OID
|
| Marketing: | Roadshow
|
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