By Paul A. Harris
Portland, Ore., Jan. 16 – Acrisure, LLC and Acrisure Finance, Inc. priced a $925 million issue of five-year senior notes (Caa2/CCC+) at par to yield 8¼% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of the 8¼% to 8½% yield talk. Initial guidance was in the mid-8% area.
The deal was heard to be more than two-times oversubscribed, according to a trader who saw the new bonds change hands at par ¾ on Tuesday afternoon.
J.P. Morgan Securities LLC was the lead bookrunner.
The Grand Rapids, Mich.-based insurance and financial services company plans to use the proceeds to redeem all of its outstanding 7% senior notes due 2025.
| Issuers: | Acrisure, LLC and Acrisure Finance, Inc.
|
| Amount: | $925 million
|
| Securities: | Senior notes
|
| Maturity: | Feb. 1, 2029
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | Treasuries plus 426 bps
|
| First call: | Feb. 1, 2026 at 104.125
|
| Trade date: | Jan. 16
|
| Settlement date: | Jan. 30
|
| Ratings: | Moody’s: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Drive-by
|
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