Published on 10/2/2019 in the Prospect News High Yield Daily.
New Issue: Alliant prices upsized $690 million 6¾% eight-year notes at par
By Paul A. Harris
Portland, Ore., Oct. 2 – Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc. priced an upsized $690 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 6¾% on Wednesday, according to market sources.
The issue size increased from $575 million with the shift of proceeds from a concurrently withdrawn $115 million loan.
The yield printed in the middle of yield talk in the 6¾% area and tight to initial guidance in the high 6% area.
The Wednesday execution represented an acceleration of the deal's timing. When announced, the deal had been expected to remain in the market into Thursday's session.
Morgan Stanley & Co. LLC, BofA Securities Inc., Capital One Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co. LLC, Jefferies LLC, KKR Capital Markets, Macquarie Capital (USA) Inc., Nomura Securities Co. Ltd., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners.
Eden Prairie, Minn.-based insurance brokerage plans to use proceeds from the Rule 144A for life and Regulation S deal, plus proceeds from a concurrent incremental term loan and cash on hand, to redeem its existing senior notes.
| Issuers: | Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc.
|
| Amount: | $690 million, increased from $575 million
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| Maturity: | Oct. 15, 2027
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| Securities: | Senior notes
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| Bookrunners: | Morgan Stanley & Co. LLC, BofA Securities Inc., Capital One Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co. LLC, Jefferies LLC, KKR Capital Markets, Macquarie Capital (USA) Inc., Nomura Securities Co. Ltd., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6¾%
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| Price: | Par
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| Yield: | 6¾%
|
| Spread: | 521 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2022, then callable at 103.375
|
| Equity clawback: | 40% at 106.75 until Oct. 15, 2022
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| Trade date: | Oct. 2
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| Settlement date: | Oct. 11
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| Ratings: | Moody's: Caa2
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| S&P: CCC+
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| Distribution: | Rule 144A for life and Regulation S
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| Price talk: | 6¾% area
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| Marketing: | Roadshow
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