New Issue: Advanced Drainage prices $350 million 5% eight-year notes at par

By Paul A. Harris

Portland, Ore., Sept. 18 – Advanced Drainage Systems, Inc. priced a $350 million issue of eight-year senior notes (B1/B) at par to yield 5%, according to a syndicate source.

The yield printed at the tight end of the 5% to 5¼% yield talk.

Morgan Stanley & Co. LLC, Barclays, BofA Securities Inc., PNC Capital Markets LLC, BMO Capital Markets Corp., Fifth Third Securities, Inc. and HSBC Securities (USA) Inc. were the joint bookrunners.

Proceeds will be used, together with proceeds from $1.05 billion of credit facilities and a recent equity offering, to repay a portion of the outstanding debt under the company’s existing senior secured credit facility that was incurred to fund its $1.08 billion acquisition of Infiltrator Water Technologies Ultimate Holdings, Inc.

Advanced Drainage Systems is a Hilliard, Ohio-based manufacturer of plastic corrugated pipes and other drainage products.

Issuer:	Advanced Drainage Systems, Inc.
Amount:	$350 million
Maturity:	Sept. 30, 2027
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, Barclays, BofA Securities Inc., PNC Capital Markets LLC, BMO Capital Markets Corp., Fifth Third Securities (USA) Inc. and HSBC Securities (USA) Inc.
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	327 bps
First call:	Make-whole call at Treasuries plus 50 bps until Sept. 30, 2022, then callable at 102.5
Equity clawback:	40% at 105 until Sept. 30, 2022
Trade date:	Sept. 18
Settlement date:	Sept. 23
Ratings:	Moody's: B1
	S&P: B
Distribution:	Rule 144A for life and Regulation S
Price talk:	5% to 5¼%
Marketing:	Roadshow

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