By Paul A. Harris
Portland, Ore., Sept. 23 – PS Logistics priced a $300 million issue of eight-year senior notes (Caa1/CCC+) at par to yield 7 7/8% on Thursday, according to market sources.
The yield printed at the tight end of yield talk in the 8% area but wide to initial guidance in the mid-to-high 7% area.
The deal underwent covenant changes, which primarily bear upon how the company may disburse cash and incur additional debt.
Credit Suisse Securities (USA) LLC was the left bookrunner. Joint bookrunners were RBC Capital Markets LLC, Deutsche Bank Securities Inc. and KKR Capital Markets LLC.
The notes were sold via issuer Carriage Purchaser, Inc.
Proceeds plus proceeds from a term loan and an equity contribution will be used to fund the acquisition of the Birmingham, Ala.-based flatbed truck transportation and logistics services company by Gamut Capital Management and British Columbia Investment Management.
| Issuer: | Carriage Purchaser, Inc.
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| Amount: | $300 million
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| Maturity: | Oct. 15, 2029
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| Securities: | Senior notes
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| Left bookrunner: | Credit Suisse Securities (USA) LLC
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| Joint bookrunners: | RBC Capital Markets LLC, Deutsche Bank Securities Inc. and KKR Capital Markets LLC
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| Coupon: | 7 7/8%
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| Price: | Par
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| Yield: | 7 7/8%
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| Spread: | 660 bps
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| First call: | Oct. 15, 2024 at 103.938
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| Equity clawback: | Up to 40% at 107.875 until Oct. 15, 2024
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| Trade date: | Sept. 23
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| Settlement date: | Sept. 30
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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
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| Price talk: | 8% area
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| Marketing: | Roadshow
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| Cusip: | 14445LAA5 and U1451LAA0
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