Published on 11/20/2020 in the Prospect News High Yield Daily.
New Issue: American Bath prices $335 million eight-year notes at par to yield 7%
By Paul A. Harris
Portland, Ore., Nov. 20 – CP Atlas Buyer, Inc., also known as American Bath Group LLC, priced a $335 issue of eight-year senior notes (Caa2/CCC+) at par to yield 7% on Friday, according to market sources.
The yield printed at the tight end of the revised 7% to 7¼% yield talk, which had tightened from earlier talk in the 7½% area. Initial guidance was in the 8% area.
Lead left bookrunner RBC Capital Markets LLC will bill and deliver. Joint bookrunners are Credit Suisse Securities (USA) LLC, BofA Securities Inc., BMO Capital Markets Corp., Truist Securities Inc., Barclays, UBS Securities LLC, Fifth Third Securities Inc., Stifel, Nicolaus & Co. Inc., Apollo and KKR.
Proceeds will be used to pay off a bridge credit facility. If the acquisition of American Bath by Centerbridge Partners is consummated substantially concurrently with or following the closing of the notes offering, the company may elect not to borrow funds under the bridge, in which case proceeds will be used to fund the acquisition.
The issuer is a Savannah, Tenn.-based designer and manufacturer of fiberglass reinforced plastic, sheet molded compound and acrylic bathtubs and showers.
| Issuer: | CP Atlas Buyer, Inc. (American Bath Group LLC)
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| Amount: | $335 million
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| Maturity: | Dec. 1, 2028
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| Securities: | Senior notes
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| Left bookrunner: | RBC Capital Markets LLC (bill and deliver)
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| Joint bookrunners: | Credit Suisse Securities (USA) LLC, BofA Securities Inc., BMO Capital Markets Corp., Truist Securities Inc., Barclays, UBS Securities LLC, Fifth Third Securities Inc., Stifel, Nicolaus & Co. Inc., Apollo and KKR
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| Coupon: | 7%
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| Price: | Par
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| Yield: | 7%
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| Spread: | 630.9 bps
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| First call: | Dec. 1, 2023 at 103.5
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| Trade date: | Nov. 20
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| Settlement date: | Nov. 25
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| Ratings: | Moody's: Caa2
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| S&P: CCC+
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| Distribution: | Rule 144A for life
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| Price talk: | 7% to 7¼%, revised from 7½% area
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| Marketing: | Roadshow
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