By Paul A. Harris
Portland, Ore., July 31 – Advisor Group Inc. priced a downsized $350 million issue of 10¾% eight-year senior notes (Caa1/B-) at 96.14 to yield 11½% on Wednesday, according to market sources.
The issue size decreased from $400 million. The deal also underwent document revisions.
The coupon came on top of coupon talk. The yield printed at the tight end of the 11½% to 11¾% yield talk.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were UBS Securities LLC, Barclays, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
The notes were priced via AG Merger Sub II, Inc.
Proceeds from the notes will be used to fund the acquisition of a 75% stake in the Phoenix-based wealth management platform by Reverence Capital Partners and for general corporate purposes.
| Issuer: | AG Merger Sub II, Inc.
|
| Amount: | $350 million, decreased from $400 million
|
| Maturity: | Aug. 1, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | UBS Securities LLC, Barclays, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 10¾%
|
| Price: | 96.14
|
| Yield: | 11½%
|
| Spread: | 952 bps
|
| Call protection: | Three years
|
| Trade date: | July 31
|
| Settlement date: | Aug. 1
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 10¾% coupon to yield 11½% to 11¾%
|
| Marketing: | Roadshow
|
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