Published on 11/16/2017 in the Prospect News High Yield Daily.
New Issue: Alight prices downsized $180 million tap of 6¾% notes due 2025 at 98.26 to yield 7.051%
By Paul A. Harris
Portland, Ore., Nov. 16 – Alight Solutions priced a downsized $180 million add-on to the Tempo Acquisition, LLC and Tempo Acquisition Finance Corp. 6¾% senior notes due June 1, 2025 (Caa1/CCC+) at 98.26 to yield 7.051%.
The tap was downsized from $200 million with the shift of $20 million proceeds to an add-on covenant-light term loan B, increasing the loan to $205 million from $185 million.
The reoffer price came at the cheap end of the 98.26 to 99 price talk.
Barclays was the left bookrunner. BofA Merrill Lynch, Citigroup Global Markets Inc., Macquarie Capital, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and CIBC World Markets were the joint bookrunners.
The Lincolnshire, Ill.-based provider of benefits outsourcing services plans to use the proceeds, together with a $185 million incremental term loan and $25 million of cash on hand, to return capital to shareholders.
| Company: | Alight Solutions
|
| Issuers: | Tempo Acquisition, LLC and Tempo Acquisition Finance Corp.
|
| Amount: | $180 million, decreased from $200 million
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| Maturity: | June 1, 2025
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| Security description: | Add-on to Tempo Acquisition, LLC and Tempo Acquisition Finance Corp. 6¾% senior notes due June 1, 2025
|
| Left bookrunner: | Barclays
|
| Joint bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Macquarie, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., CIBC
|
| Coupon: | 6¾%
|
| Price: | 98.26
|
| Yield to worst: | 7.051%
|
| First call: | Make-whole call at Treasuries plus 50 bps until June 1, 2020, then callable at 103.375
|
| Trade date: | Nov. 16
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| Settlement date: | Nov. 27 with accrued interest
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| 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: | 98.26 to 99
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| Marketing: | Investor call
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| Original issue: | $500 million priced at par on April 20, 2017
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| Fungibility: | Add-on notes to become fungible with original notes
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| Total issue size: | $680 million
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