By Paul A. Harris
Portland, Ore., Nov. 9 – Verisure Holding AB and Verisure Midholding AB syndicated €1,112,000,000 of debt that came in the form of high-yield bond and term loan paper on Friday, according to a market source.
The transaction featured two tranches of senior secured debt issued by Verisure Holding, in the form of a term loan and notes (B1/B).
It included a €712 million Euribor plus 350 basis points seven-year term loan term loan B, which priced at par. The spread came at the wide end of the 325 bps to 350 bps spread talk. The Euribor floor came on top of talk. The reoffer price came at the rich end of the 99.75 to par price talk.
Verisure Holding also priced a €300 million issue of 4.5-year notes at par to yield 3½%. The yield printed 12.5 bps inside of yield talk in the 3¾% area.
In an unsecured tranche, Verisure Midholding priced a €100 million add-on to its 5¾% senior notes due Dec. 1, 2023 at 99.75. The reoffer price came at the rich end of the 99.5 to 99.75 price talk.
The Malmo, Sweden-based provider of security systems plans to use the proceeds to refinance its 6% senior secured notes due Nov. 1, 2022, as well as to repay its revolving credit facility and to fund a distribution to its shareholders.
| Issuers: | Verisure Holding AB and Verisure Midholding AB
|
| Amount: | €400 million
|
| Trade date: | Nov. 9
|
| Settlement date: | Nov. 16
|
|
|
| New secured notes
|
| Issuer: | Verisure Holding AB
|
| Amount: | €300 million
|
| Maturity: | May 15, 2023
|
| Securities: | Senior secured notes
|
| Lead bookrunner: | Morgan Stanley
|
| Joint bookrunners: | BofA Merrill Lynch, Goldman Sachs, Nomura, Barclays, Citigroup, JPMorgan and Nordea
|
| Coupon: | 3½%
|
| Price: | Par
|
| Yield: | 3½%
|
| Call protection: | 1.5 years
|
| Ratings: | Moody's: B1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3¾% area
|
|
|
| Add-on notes
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| Issuer: | Verisure Midholding AB
|
| Amount: | €100 million
|
| Maturity: | Dec. 1, 2023
|
| Securities: | Senior notes add-on
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| Lead bookrunner: | Goldman Sachs
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| Joint bookrunners: | BofA Merrill Lynch, Morgan Stanley, Nomura, Barclays, Citigroup, JPMorgan and Nordea
|
| Coupon: | 5¾%
|
| Price: | 99.75
|
| First call date: | Dec. 1, 2019
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 99.5 to 99.75
|
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