By Paul A. Harris
Portland, Ore., Jan. 18 – Caliber Collision priced a $1.25 billion issue of Wand NewCo 3 Inc. eight-year senior secured notes (B3/B) at par to yield 7 5/8% on Thursday, according to market sources.
Strong demand for the paper enabled the first-time issuer to drive pricing dramatically lower from initial guidance in the 8% area, a price range at which the deal commanded a whopping $7.5 billion of interest among investors, sources said.
The yield ultimately printed at the tight end of final yield talk in the 7¾% area.
The bonds broke sharply higher in the secondary market on Thursday afternoon, where a trader had them at 101 5/8 bid, 102 1/8% offered.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were BofA Securities, Inc., Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Truist Securities, Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., J.P. Morgan Securities LLC, Jefferies LLC, SMBC Nikko Securities America Inc. and PNC Capital Markets LLC.
The Lewisville, Tex.-based collision repair company plans to use the proceeds plus a $2.525 billion term loan B to refinance debt and fund distributions to its parent entity.
| Issuer: | Wand NewCo 3 Inc.
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| Amount: | $1.25 billion
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| Issue: | Senior secured notes
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| Maturity: | Jan. 30, 2032
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | BofA Securities, Inc., Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Truist Securities, Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., J.P. Morgan Securities LLC, Jefferies LLC, SMBC Nikko Securities America Inc. and PNC Capital Markets LLC
|
| Coupon: | 7 5/8%
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| Price: | Par
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| Yield: | 7 5/8%
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| Spread: | 351 bps
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| First call: | Jan. 30, 2027 at 103.813
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| Trade date: | Jan. 18
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| Settlement date: | Jan. 30
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| Ratings: | Moody’s: B3
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7¾% area
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| Marketing: | Roadshows
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