Published on 7/24/2020 in the Prospect News High Yield Daily.
New Issue: Alight Solutions prices upsized $250 million tap of 6¾% notes due 2025 at 102.5
By Paul A. Harris
Portland, Ore., July 24 – Alight Solutions priced an upsized $250 million fungible add-on to the Tempo Acquisition LLC and Tempo Finance Corp. 6¾% senior notes due June 1, 2025 (existing senior unsecured ratings Caa1/CCC+) at 102.5 to yield 6.143% in a Friday drive-by, according to a market source.
The add-on size increased from $150 million.
The issue price came on top of price talk.
Joint bookrunner Barclays will bill and deliver. BofA Securities Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Macquarie Capital, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Goldman Sachs & Co. LLC and CIBC World Markets Corp. were bookrunners.
The Lincolnshire, Ill.-based provider of benefits outsourcing services plans to use the proceeds for general corporate purposes, which are to include repayment of its term loan.
| Issuers: | Tempo Acquisition LLC and Tempo Finance Corp.
|
| Amount: | $250 million, increased from $150 million
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| Maturity: | June 1, 2025
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| Security description: | Add-on to 6¾% senior notes due June 1, 2025
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| Bookrunners: | Barclays (bill and deliver), BofA Securities Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Macquarie Capital, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Goldman Sachs & Co. LLC and CIBC World Markets Corp.
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| Co-manager: | Blackstone Group
|
| Coupon: | 6¾%
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| Price: | 102.5
|
| Yield to maturity: | 6.143%
|
| Spread: | 589 bps
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| First call: | Presently callable at 103.375
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| Trade date: | July 24
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| Settlement date: | Aug. 8
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| Existing unsecured ratings: | Moody's: Caa1
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| S&P: CCC+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 102.5
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| Marketing: | Drive-by
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| Original issue: | $500 million priced in April 2017
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| First add-on: | $180 million priced in November 2017
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| Second add-on: | $280 million priced in July 2019
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| Fungibility: | New add-on notes will become fungible with existing notes
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