By Paul A. Harris
Portland, Ore., Feb. 3 – Prince International Corp. priced a downsized $756 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 9% on Thursday, according to market sources.
The company decreased the size of the bond portion of its acquisition financing from $1.256 billion with the elimination of a $500 million tranche of secured notes, with those proceeds shifted to the company’s bank loan.
The bonds printed at the wide of the 8¾% to 9% yield talk and well wide of initial guidance in the low-8% area.
Left bookrunner Barclays will bill and deliver. Joint bookrunners were Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Jefferies LLC, KeyBanc Capital Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and BofA Securities Inc.
The issuing entity will be PMHC II, Inc., an affiliate of Prince International.
The Houston-based supplier of mineral-based products, engineered additives and specialty coatings plans to use the proceeds to help fund its acquisition of Ferro Corp. and to repay debt.
The proceeds are to be escrowed pending the acquisition. There is a mandatory par call if the acquisition is not consummated by Aug. 11, 2022.
With the elimination of the $500 million secured notes, the concurrent term loan grew to $2.445 billion from $1.945 billion.
| Issuer: | PMHC II, Inc.
|
| Amount: | $756 million, decreased from $1.256 billion with the elimination of $500 million secured notes, which were shifted to bank loan
|
| Issue: | Senior notes
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| Maturity: | Feb. 15, 2030
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| Left bookrunner: | Barclays (bill and deliver)
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| Joint bookrunners: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Jefferies LLC, KeyBanc Capital Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and BofA Securities Inc.
|
| Coupon: | 9%
|
| Price: | Par
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| Yield: | 9%
|
| Spread: | 720 bps
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| First call: | Feb. 15, 2025 at 104.5
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| Trade date: | Feb. 3
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| Settlement date: | Feb. 11
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| Ratings: | Moody's: Caa2
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| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% to 9%
|
| Marketing: | Roadshow
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