Published on 9/13/2017 in the Prospect News High Yield Daily.
New Issue: Alliant prices $150 million tap of 8¼% notes due 2023 at 104
By Paul A. Harris
Portland, Ore., Sept. 13 – Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc. priced a $150 million add-on to their 8¼% senior notes due Aug. 1, 2023 (Caa2/CCC+) at 104 on Wednesday, according to a syndicate source.
The reoffer price came on top of price talk and renders a 6.69% yield to worst and a 7.395% yield to maturity.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, Jefferies LLC, Macquarie Capital, Nomura, RBC Capital Markets and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
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.
| Issuer: | Alliant Holdings Intermediate, LLC and Alliant Holdings Co-Issuer, Inc.
|
| Face amount: | $150 million
|
| Proceeds: | $156 million
|
| Maturity: | Aug. 1, 2023
|
| Security description: | Add-on to 8¼% senior notes due Aug. 1, 2023
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, Jefferies LLC, Macquarie Capital, Nomura, RBC Capital Markets, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 8¼%
|
| Price: | 104
|
| Yield to worst: | 6.69%
|
| Yield to maturity: | 7.395%
|
| Spread: | 523 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2018, then callable at 104.125
|
| Equity clawback: | 40% equity clawback at 108.25 until to Aug. 1, 2018
|
| Trade date: | Sept. 13
|
| Settlement date: | Sept. 18 with accrued interest
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 104
|
| Marketing: | Quick to market
|
| Original issue: | $535 million priced at par in July 2013
|
| Fungibility: | Rule 144A add-on notes to become immediately fungible with original notes; Regulation S add-on notes to become fungible with original notes after 40-day cooling period
|
| Total issue size: | $685 million
|
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