Allied Universal moves proceeds to secured portion of $2.96 billion deal, sets final pricing

By Paul A. Harris

Portland, Ore., May 4 – Allied Universal moved $325 million to the secured portion from the unsecured portion of its $2.96 billion three-part offering of high-yield notes backing its acquisition of London-based security services provider G4S, according to market sources.

The revised deal features an upsized $2 billion amount of secured paper in two tranches: Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas LuxCo 4 Sarl are selling an upsized $1.225 billion (from $900 million) amount of seven-year senior secured notes (B2/B) and Atlas LuxCo 4 Sarl/Allied Universal Holdco LLC/Allied Universal Finance Corp. are selling $775 million of seven-year senior secured notes (B2/B).

The secured portion of the deal was upsized from $1.675 billion, and the notes in both of those tranches are priced at the 4 5/8% area, tight to yield talk in the 4¾% area. Initial guidance was in the high 4% to 5% area.

The sole unsecured offering, via Allied Universal Holdco LLC/Allied Universal Finance Corp., features a downsized $900 million ($1.285 billion) amount of eight-year senior notes (Caa1/CCC+) with final pricing of 6%, inside of the 6¼% to 6½% talk. Initial guidance in the mid-to-high 6% area.

The notes in all three tranches become callable after three years at par plus 50% of the respective coupons.

Both tranches of secured notes feature special call provisions allowing the issuer to redeem 10% of the notes annually at 103 during the non-call periods.

The deal is set to price on Wednesday.

Credit Suisse Securities (USA) LLC is the left bookrunner. Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., SG Americas Securities LLC, ING Financial Markets LLC, MUFG and Truist Securities Inc. are the joint bookrunners.

The Santa Ana, Calif.-based provider of security services plans to use the proceeds to pay off the bridge loan used, along with cash on hand and certain equity contributions, to fund the G4S acquisition.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.