Published on 10/14/2020 in the Prospect News High Yield Daily.
New Issue: Restaurant Brands prices upsized $1.5 billion tap of 4% secured notes due 2030 at par
By Paul A. Harris
Portland, Ore., Oct. 14 – Restaurant Brands International, Inc. priced an upsized $1.5 billion add-on to the 1011778 BC ULC/New Red Finance Inc. 4% senior secured second-lien notes due Oct. 15, 2030 (B2/B+) at par to yield 4% in a Wednesday drive-by, according to a syndicate source.
The tap amount increased from $1 billion
The price came on top of price talk.
The deal was well oversubscribed, a bond trader said.
Left lead bookrunner Morgan Stanley & Co. LLC will bill and deliver.
The Toronto-based quick service restaurant company plans to use the proceeds, together with cash on hand, to redeem a portion of its 5% second lien secured notes due 2025.
| Issuer: | 1011778 BC ULC and New Red Finance Inc.
|
| Amount: | $1.5 billion, increased from $1 billion
|
| Maturity: | Oct. 15, 2030
|
| Security description: | Add-on to 4% senior secured notes due Oct. 15, 2030
|
| Left lead bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., Barclays, RBC Capital Markets Corp.
|
| Co-managers: | Goldman Sachs & Co. LLC, Rabo, BMO Capital Markets Corp., MUFG, Fifth Third Securities Inc., Citigroup Global Markets Inc., Capital One Securities Inc., Scotia, BNP Paribas Securities Corp., Truist Securities, Inc.
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 328 bps
|
| First call: | Oct. 15, 2025 at 102
|
| Trade date: | Oct. 14
|
| Settlement date: | Nov. 2 with accrued interest
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Par
|
| Marketing: | Drive-by
|
| Original issue: | $1 billion priced in September 2020
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
