Published on 3/7/2018 in the Prospect News High Yield Daily.
New Issue: Arrow Global sells £100 million, €285 million bonds in two tranches
By Paul A. Harris
Portland, Ore., March 7 – Arrow Global Finance plc priced two tranches of secured notes (Ba3/BB) on Wednesday, according to a market source.
The deal included an upsized €285 million amount of Euribor plus 375 basis points eight-year senior secured floating-rate notes, which priced at par. The tranche size was increased from €150 million. The spread came at the wide end of the 350 bps to 375 bps spread talk.
Arrow Global also priced a downsized £100 million add-on to its 5 1/8% senior secured notes due Sept. 15, 2024 at 99.5 to yield 5.216%. The add-on was downsized from £120 million. The reoffer price came at the cheap end of the 99.5 to 99.75 price talk.
HSBC and JPMorgan were the joint global coordinators and physical bookrunners.
The Manchester, England-based purchaser of consumer debt and provider of receivables management solutions plans to use the proceeds from the Rule 144A and Regulation S deal to refinance debt.
| Issuer: | Arrow Global Finance plc
|
| Physical bookrunners/ global coordinators: | HSBC, JPMorgan
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| Joint bookrunners: | ABN Amro, DNB Markets, Lloyds, NatWest
|
| Trade date: | March 7
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| Settlement date: | March 15
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Fixed-rate notes
|
| Amount: | £100 million, decreased from £120 million
|
| Maturity: | Sept. 15, 2024
|
| Security description: | Add-on to 5 1/8% senior secured notes due Sept. 15, 2024
|
| Coupon: | 5 1/8%
|
| Price: | 99.5
|
| Yield to maturity: | 5.216%
|
| Spread: | 399.8 bps
|
| First call: | Make-whole call at Gilts plus 50 bps until Sept. 15, 2019, then callable at 102.563
|
| Price talk: | 99.5 to 99.75
|
| Bill and deliver: | HSBC
|
|
|
| Floating-rate notes
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| Amount: | €285 million, increased from €150 million
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| Maturity: | March 1, 2026
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| Securities: | Senior secured floating-rate notes
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| Coupon: | Euribor plus 375 bps
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| Price: | Par
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| Yield: | Euribor plus 375 bps
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| First call: | Make-whole call at Bunds plus 50 bps until March 1, 2020, then callable at 101
|
| Price talk: | Euribor plus 350 bps to 375 bps
|
| Bill and deliver: | JPMorgan
|
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