By Paul A. Harris
Portland, Ore., Jan. 20 – Truck Hero Inc. priced an upsized $600 million issue of eight-year senior notes (Caa2/CCC) at par to yield 6¼% on Wednesday, according to market sources.
The issue size increased from $550 million.
The yield printed at the tight end of the 6¼% to 6½% yield talk. Initial guidance was in the 7% area.
Jefferies LLC was at the left of a syndicate of bookrunners that also included BofA Securities Inc., Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC and Stifel Nicolaus and Co., Inc.
Proceeds together with a concurrent first-lien term loan will be used to fund the acquisition of Truck Hero by L Catterton and CCMP Capital. The additional proceeds resulting from the $50 million upsizing of the deal will be used to reduce the equity portion of the acquisition.
Truck Hero is an Ann Arbor, Mich.-based marketer of accessories for trucks and jeeps.
| Issuer: | Truck Hero Inc.
|
| Amount: | $600 million, increased from $550 million
|
| Maturity: | Feb. 1, 2029
|
| Securities: | Senior notes
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| Bookrunners: | Jefferies LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC and Stifel Nicolaus and Co., Inc.
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| First call: | Feb. 1, 2024 at 103.125
|
| Trade date: | Jan. 20
|
| Settlement date: | Jan. 29
|
| Ratings: | Moody’s Caa2
|
| S&P: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¼% to 6½%
|
| Marketing: | Roadshow
|
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