Alliant to sell $150 million tap of 8¼% notes due 2023 on Wednesday; talk is 104

By Paul A. Harris

Portland, Ore., Sept. 13 – Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc. plan to price a $150 million add-on to their 8¼% senior notes due Aug. 1, 2023 (current ratings Caa2/CCC+) on Wednesday, according to a syndicate source.

The deal is talked at a reoffer price of 104.

Books close at 1 p.m. ET on Wednesday, and the Rule 144A and Regulation S for life offering is set to price thereafter.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, Jefferies LLC, Macquarie Capital, Nomura, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are the joint bookrunners.

The notes feature a make-whole call at Treasuries plus 50 basis points until Aug. 1, 2018, then become callable at 104.125. They also feature a 40% equity clawback at 108.25 until to Aug. 1, 2018.

The Newport Beach, Calif.-based specialty insurance brokerage firm plans to use the proceeds to acquire an institutional investor’s minority equity interest in the company.

The original $535 million issue priced at par in July 2013.

The Rule 144A add-on notes to become immediately fungible with original notes. The Regulation S add-on notes will become fungible with original notes after a 40-day cooling period.

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