Ritchie Bros. to price $1.35 billion notes in secured and unsecured tranches on Wednesday

By Paul A. Harris

Portland, Ore., Feb. 28 – Ritchie Bros. Auctioneers Inc. plans to price $1.35 billion of high-yield notes on Wednesday, according to market sources.

The two-part offering was set to kick off on a Tuesday morning conference call with investors, with the roadshow continuing on Wednesday and with the notes set to price later that day.

The Rule 144A and Regulation S deal includes $550 million of five-year senior secured notes (Ba2/BB+), which become callable after two years at par plus 50% of the coupon, with initial guidance in the low 7% area.

The offering also includes $800 million of eight-year senior notes (B1/BB-), which become callable after three years at par plus 50% of the coupon, with initial guidance that has them pricing 100 basis points behind the secured notes.

The Vancouver, B.C.-based auction company plans to use the proceeds plus its term loan A and balance sheet cash to fund the cash portion of its acquisition of IAA Inc., as well as to refinance IAA’s debt, repay all of Ritchie Bros.’ debt, including its 2016 notes, and to pay the Ritchie Bros. special dividend.

Goldman Sachs is the left bookrunner. BofA, RBC, Wells Fargo, Scotia, CIBC, U.S. Bancorp, Truist, MUFG, HSBC and Citizens are the joint bookrunners.

© 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.