By Paul A. Harris
Portland, Ore., Nov. 9 – Italy’s ICBPI (Istituto Centrale Delle Banche Popolari Italiane) priced a €1.1 billion of 5.5-year senior secured PIK toggle notes in two tranches on Friday, according to a market source.
The deal included €900 million of fixed-rate notes, which priced at par to yield 8¼%. The fixed-rate notes have a cash coupon of 8¼% and a PIK coupon on 9%. The tranche size came at the high end of the €850 million to €900 million target size. The yield printed at the wide end of the 8% to 8¼% yield talk.
In addition ICBPI priced €200 million of floating-rate notes at 99. The floating-rate notes pay a cash coupon of three-month Euribor plus 800 basis points and a PIK coupon of three-month Euribor plus 875 bps. The tranche size came at the low end of the €200 million to €250 million target size. The cash spread and reoffer price came on top of price talk.
Physical bookrunner Goldman Sachs International will bill and deliver. HSBC Bank and JPMorgan were also physical bookrunners.
BofA Merrill Lynch, Citigroup, UniCredit and Nomura were joint bookrunners.
The issuing entity is special purpose vehicle Mercury Bondco plc.
Proceeds will be used to help fund the €2.15 billion buyout of ICBPI, a Milan-based financial services provider, by a consortium comprised of Advent International, Bain Capital and Clessidra.
| Issuer: | Mercury Bondco plc (ICBPI)
|
| Amount: | €1.1 billion
|
| Maturity: | May 30, 2021
|
| Securities: | Senior secured PIK toggle notes
|
| Physical bookrunners: | Goldman Sachs International (bill and deliver), HSBC Bank, JPMorgan
|
| Joint bookrunners: | BofA Merrill Lynch, Citigroup, UniCredit, Nomura (joint books)
|
| Trade date: | Nov. 6
|
| Settlement date: | Nov. 13
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Fixed-rate notes
|
| Amount: | €900 million
|
| Cash coupon: | 8¼%
|
| PIK coupon: | 9%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 819 bps
|
| First call date: | Nov. 30, 2017
|
| Price talk: | 8% to 8¼%
|
|
|
| Floating-rate notes
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| Amount: | €200 million
|
| Cash coupon: | Three-month Euribor plus 800 bps
|
| PIK coupon: | Three-month Euribor plus 875 bps
|
| Price: | 99
|
| First call date: | May 30, 2016
|
| Price talk: | Euribor plus 800 bps at 99
|
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