At Home sets price talk in $800 million two-part offering of notes; pricing Thursday

By Paul A. Harris

Portland, Ore., June 23 – Ambience Merger Sub, Inc. set price talk in an $800 million two-part offering of high-yield notes backing the buyout of At Home Group, Inc. by Hellman & Friedman, according to market sources.

The Rule 144A and Regulation S for life deal includes a $300 million tranche of seven-year senior secured notes (B1/B) talked to yield in the 5% area, inside of initial guidance of 5¼% to 5½%. The notes become callable after two years at par plus 50% of the coupon. A special call provision allows for the issuer to redeem 10% of the secured notes at 103 during the non-call period.

The deal also includes a $500 million tranche of eight-year senior unsecured notes (Caa1/CCC+) talked to yield in the 7¼% area, wide to initial guidance that had them pricing 200 basis points behind the secured notes. The unsecured notes become callable after three years at par plus 50% of the coupon.

Books close at 11 a.m. ET on Thursday, and the deal is set to price thereafter.

Joint bookrunner Barclays will bill and deliver. BofA Securities Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are also joint bookrunners.

Proceeds will be used to finance the acquisition of At Home Group by Hellman & Friedman in an all-cash transaction valued at $2.8 billion, including the assumption of debt, expected to close in the third quarter of 2021.

Following the closing of the acquisition the issuer will become At Home Group.

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