By Paul A. Harris
Portland, Ore., Sept. 19 – InfraBuild Australia Pty. Ltd. priced a downsized $325 million restructured issue of five-year senior secured notes (Ba3) at par to yield 12% on Thursday, according to a market source.
The yield printed 200 basis points beyond the midpoint of yield talk in the 10% area.
Early guidance was 8¾% to 9%, a trader said.
The bonds ultimately came with a senior secured structure after being marketed with an unsecured structure earlier in the month, the trader added.
The final $325 million deal size had been decreased from $475 million with a $150 million injection of capital from the company's controller, Sanjeev Gupta, according to the trader.
J.P. Morgan Securities LLC managed the sale.
The New South Wales-based integrated manufacturer and supplier of steel long products and services came to the market to refinance bank debt.
| Issuer: | InfraBuild Australia Pty. Ltd.
|
| Amount: | $325 million
|
| Maturity: | Oct. 1, 2024
|
| Securities: | Senior secured notes (revised from unsecured notes)
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Call protection: | Two years
|
| Trade date: | Sept. 19
|
| Rating: | Moody's: Ba3
|
| Distribution: | Rule 144A
|
| Price talk: | 10% area
|
| Marketing: | Roadshow
|
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