By Paul A. Harris
Portland, Ore., March 31 – Arcosa, Inc. priced a $400 million issue of eight-year senior notes (Ba2/BB) at par to yield 4 3/8% on Wednesday, according to market sources.
The yield printed inside of the 4½% to 4¾% initial talk.
The deal was heard to be playing to $1.85 billion of orders at noon ET on Wednesday, a trader said.
J.P. Morgan Securities LLC and BofA Securities Inc. were the bookrunners.
Proceeds will be used to fund the acquisition of StonePoint Ultimate Holding, LLC and affiliated entities, expected to close in April 2021, as well as to repay any balance on a new $150 million 364-day credit facility, with any remaining proceeds to be used for general corporate purposes, which may include repayment of debt under the revolver and other potential strategic investments.
Dallas-based Arcosa provides infrastructure-related products and solutions with leading positions in construction, engineered structures, and transportation markets.
| Issuer: | Arcosa Inc.
|
| Amount: | $400 million
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| Maturity: | April 15, 2029
|
| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC and BofA Securities Inc.
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Spread: | 285 bps
|
| Call protection: | Three years
|
| Trade date: | March 31
|
| Settlement date: | April 6
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4½% to 4¾%
|
| Marketing: | Roadshow
|
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