Published on 8/2/2016 in the Prospect News High Yield Daily.
New Issue: Axalta prices $875 million equivalent eight-year notes in two tranches
By Paul A. Harris
Portland, Ore., Aug. 2 – Axalta Coating Systems Ltd. priced $875 million equivalent of eight-year senior notes (B2/B+) in two tranches on Tuesday, according to market sources.
The deal included $500 million of 4 7/8% notes, which priced at 99.591 to yield 4.938%, slightly below the midpoint of yield talk in the 5% area.
In addition the company priced €335 million of 4¼% notes at par to yield 4¼%. The yield printed at the tight end of the 4¼% to 4½% yield talk.
Lead left bookrunner Barclays will bill and deliver.
Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the joint bookrunners.
The Philadelphia-based provider of coatings systems for industrial applications plans to use proceeds to refinance its 7 3/8% senior notes due 2021 and for general corporate purposes.
| Issuer: | Axalta Coating Systems, LLC
|
| Amount: | $875 million equivalent
|
| Maturity: | Aug. 15, 2024
|
| Securities: | Senior notes
|
| Left bookrunner: | Barclays (bill and deliver)
|
| Joint bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC
|
| Co-managers: | PNC Capital Markets, SunTrust Robinson Humphrey Inc.
|
| Trade date: | Aug. 2
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Dollar-denominated notes
|
| Face amount: | $500 million
|
| Proceeds: | $497,955,000
|
| Coupon: | 4 7/8%
|
| Price: | 99.591
|
| Yield: | 4.938%
|
| Spread: | 349 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2019, then callable at 103.656
|
| Equity clawback: | 40% at 104.875 until Aug. 15, 2019
|
| Price talk: | 5% area
|
|
|
| Euro-denominated notes
|
| Amount: | €335 million
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 456 bps
|
| Call: | Make-whole call at Bunds plus 50 bps until Aug. 15, 2019, then callable at 103.188
|
| Equity clawback: | 40% at 104.25 until Aug. 15, 2019
|
| Price talk: | 4¼% to 4½%
|
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