By Paul A. Harris
Portland, Ore., July 10 – Alight Solutions priced a $280 million add-on to the Tempo Acquisition LLC/Tempo Acquisition Finance Corp. 6¾% senior notes due June 1, 2025 at 101.25 on Wednesday, according to a market source.
The deal prints with a 6.258% yield to worst and a 6.487% yield to maturity.
The issue price came at the rich end of price talk in the 101 area.
Barclays was the lead left bookrunner.
The existing ratings from Moody's Investors Service are a B2 corporate rating and a Caa1 senior unsecured rating, the source said. The existing ratings from S&P Global Ratings are a B corporate rating and a CCC+ senior unsecured rating.
The Lincolnshire, Ill.-based provider of benefits outsourcing services plans to use the proceeds to finance its acquisition of Hodges-Mace, an Atlanta-based provider of benefit management software and services.
| Issuer: | Tempo Acquisition LLC and Tempo Acquisition Finance Corp.
|
| Amount: | $280 million
|
| Maturity: | June 1, 2025
|
| Security description: | Add-on to 6¾% senior notes due June 1, 2025
|
| Lead bookrunner: | Barclays
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc.
|
| Co-manager: | Blackstone
|
| Coupon: | 6¾%
|
| Price: | 101.25
|
| Yield to worst: | 6.258%
|
| Yield to maturity: | 6.487%
|
| Spread: | 459 bps
|
| First call: | June 1, 2020 at 103.375
|
| Equity clawback: | 40% at 106.75 until June 1, 2020
|
| Trade date: | July 10
|
| Settlement date: | July 29
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 101
|
| Marketing: | Quick to market
|
| Original issue: | $500 million priced in April 2017
|
| Previous add-on: | $180 million priced in November 2017
|
| Fungibility: | Add-on notes to become fungible with existing notes
|
| Total issue size: | $960 million
|
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