HC2 widens talk, shortens maturity on $535 million notes offering, now whispered at 12˝%-13%

By Abigail W. Adams

Portland, Me., Oct. 31 – HC2 Holdings, Inc. widened initial price talk and shortened the maturity on its $535 million offering of senior secured notes, according to market sources.

The deal is now whispered to come with a coupon of 10% and a discounted offering price for a yield of 12˝% to 13%.

Initial guidance had the deal coming with a yield in the low-to-mid 9% area, a source said.

The maturity was also shortened to three years from five years with the notes callable after 1.5 years.

The deal is still in the market with timing for its pricing pending, a source said.

HC2 marketed the deal via a roadshow, which began on Oct. 23, with pricing initially expected early in the Oct. 29 week.

Jefferies LLC is bookrunner for the Rule 144A and Regulation S deal.

Proceeds from the deal will be used to refinance the company’s 11% secured notes due Dec. 1, 2019.

HC2 Holdings is a New York-based diversified holding company with four core operating subsidiaries in the construction, marine services, natural gas distribution and telecommunications businesses.

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