By Paul A. Harris
Portland, Ore., Dec. 20 – Avison Young (Canada) Inc. priced a $130 million issue of 9½% five-year senior secured notes (B3/B+) at 98.07 to yield 10% on Tuesday, according to an informed source.
The coupon came on top of coupon talk, a trader said, adding that the reoffer price came near the cheap end of the 98 to 99 price talk, and the yield came at the wide end of the 9¾% to 10% yield talk.
William Blair was the bookrunner.
Changes made to the deal include a limitation on additional debt and an offer to repurchase $10 million of the notes per year at 103 starting at the end of year two, unless the company raises $30 million of new equity.
The Toronto-based commercial real estate firm plans to use the proceeds to refinance existing debt, to repurchase a portion of a minority partner's shares and to fund cash on the balance sheet for growth capital.
The issuer is the largest principal-owned and led commercial real estate services firm in the world, offering a full range of services to occupiers, owners and investors in office, retail, industrial, multi-family, hospitality and other types of commercial real estate, according to the source.
| Issuer: | Avison Young (Canada) Inc.
|
| Face amount: | $130 million
|
| Proceeds: | $124,491,000
|
| Maturity: | Dec. 15, 2021
|
| Securities: | Senior secured notes
|
| Coupon: | 9½%
|
| Price: | 98.07
|
| Yield: | 10%
|
| Call: | Callable after Dec. 15, 2019 at 104.75
|
| Trade date: | Dec. 20
|
| Settlement date: | Dec. 23
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 9½% coupon at 98 to 99 with all-in yield of 9 ¾% to 10%
|
| Marketing: | Roadshow
|
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