By Paul A. Harris
Portland, Ore., Jan. 26 – HC2 Holdings, Inc. priced an upsized $330 million issue of five-year senior secured notes (Caa1/B) at par to yield 8½% on Tuesday, according to market sources.
The issue size increased from $300 million.
The yield printed at the tight end of the 8½% to 8¾% yield talk. Early guidance was 8½% to 9%.
Jefferies LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners.
The New York-based diversified holding company plans to use the proceeds to redeem its existing senior secured notes and repay its outstanding revolver balance.
HC2 Holdings has four core operating subsidiaries in the construction, marine services, natural gas distribution and telecommunications businesses.
| Issuer: | HC2 Holdings, Inc.
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| Amount: | $330 million, increased from $300 million
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| Maturity: | Feb. 1, 2026
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| Securities: | Senior secured notes
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| Bookrunners: | Jefferies LLC and Credit Suisse Securities (USA) LLC
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| Coupon: | 8½%
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| Price: | Par
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| Yield: | 8½%
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| First call: | Feb. 1, 2023 at 104.25
|
| Trade date: | Jan. 26
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| Settlement date: | Feb. 1
|
| Ratings: | Moody’s: Caa1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% to 8¾%
|
| Marketing: | Roadshow
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