By Paul A. Harris
Portland, Ore., Jan. 26 – HC2 Holdings, Inc. priced an upsized $55 million add-on to its 11% senior secured notes due Dec. 1, 2019 (Caa1/B-) at par to yield 10.986% on Thursday, according to an informed source.
The issue size was increased from $45 million.
The price came at the rich end of the 99.5 to par price talk.
Timing was accelerated; the deal had been scheduled to be in the market until early in the week ahead and to price Tuesday.
Jefferies LLC was the bookrunner.
The New York-based diversified holding company plans to use the proceeds to refinance the HC2 Holdings 2, Inc. 11% senior secured bridge note due 2019, as well as for working capital for the company and its subsidiaries and for general corporate purposes, including the financing of potential future acquisitions and investments.
| Issuer: | HC2 Holdings, Inc.
|
| Amount: | $55 million, increased from $45 million
|
| Maturity: | Dec. 1, 2019
|
| Security description: | Add-on to 11% senior secured notes due Dec. 1, 2019
|
| Bookrunner: | Jefferies LLC
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 10.986%
|
| Call: | Currently callable at 108.25, 105.5 on and after Dec. 1, 2017
|
| Trade date: | Jan. 26
|
| Settlement date: | Jan. 31 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 99.5 to par
|
| Marketing: | Quick to market
|
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