By Paul A. Harris
Portland, Ore., March 6 – Xerox Holdings Corp. priced an upsized $500 million issue of senior guaranteed notes due Nov. 30, 2029 (B1/BB) at par to yield 8 7/8% on Wednesday, according to market sources.
The issue size increased from $400 million.
The yield printed 12.5 basis points inside of the 9% to 9¼% yield talk. Initial guidance was in the mid-to-high 9% area.
Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were Credit Agricole CIB, Mizuho Securities USA Inc., PNC Capital Markets LLC and Scotia Capital (USA) Inc.
The deal, which was heard to be playing to $2 billion of demand at price talk, was par 5/8 bid, 101 3/8 offered late Wednesday afternoon, according to a trader.
The Norwalk, Conn.-based supplier of print and digital document products and services plans to use the proceeds to fund a tender offer for any and all of its 3.8% senior notes due 2024 and a portion of its 5% senior notes due 2025.
| Issuer: | Xerox Holdings Corp.
|
| Amount: | $500 million, increased from $400 million
|
| Issue: | Senior notes
|
| Maturity: | Nov. 30, 2029
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Credit Agricole CIB, Mizuho Securities USA Inc., PNC Capital Markets LLC and Scotia Capital (USA) Inc.
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 478 bps
|
| First call: | Nov. 30, 2026 at 104.438
|
| Trade date: | March 6
|
| Settlement date: | March 20
|
| Ratings: | Moody’s: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Roadshow
|
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