By Paul A. Harris
Portland, Ore., Sept. 25 – Howden (Granite Holdings US Acquisition Co.) priced $300 million of 11% eight-year senior notes (Caa1/B-) at 96.176 to yield 11¾% on Wednesday, according to market sources.
The yield printed 25 basis points beyond the wide end of the 11% to 11½% final price talk. Earlier talk was 10¾% to 11%, sources say, adding that the deal came into the market during the Sept. 16 week with initial guidance in the 10% area.
Along with wider talk came covenant changes, according to a bond trader.
J.P. Morgan Securities LLC, Barclays, BNP Paribas, HSBC and RBC Capital Markets LLC are the joint bookrunners.
Proceeds are earmarked to help fund the acquisition of Howden, the Glasgow, Scotland-based air and gas handling business of Colfax Corp., by KPS Capital Partners.
| Issuer: | Granite Holdings US Acquisition Co.
|
| Amount: | $300 million
|
| Tenor: | Eight years
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BNP Paribas, HSBC and RBC Capital Markets LLC
|
| Coupon: | 11%
|
| Price: | 96.176
|
| Yield: | 11¾%
|
| Call protection: | Three years
|
| Trade date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 11% to 11½%
|
| Marketing: | Roadshow
|
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