Published on 2/24/2021 in the Prospect News High Yield Daily.
New Issue: Arconic prices $300 million tap of 6 1/8% notes due 2028 at 106.25 to yield 5.047%
By Paul A. Harris
Portland, Ore., Feb. 24 – Arconic Corp. priced a $300 million add-on to its 6 1/8% senior second-lien secured notes due Feb. 15, 2028 (Ba1/B+/BB+) at 106.25 with a 5.047% yield to maturity on Wednesday, according to market sources.
The issue price came in the middle of the 106 to 106.5 price talk but at the rich end of the 105.75 to 106.25 early guidance.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Truist Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Wells Fargo Securities LLC, CIBC World Markets Corp. and PNC Capital Markets LLC.
The Pittsburgh-based producer of aluminum sheet and plate products plans to use the proceeds for general corporate purposes, including the annuitization of certain pension plan obligations.
| Issuer: | Arconic Corp.
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| Amount: | $300 million
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| Maturity: | Feb. 15, 2028
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| Security description: | Add-on to 6 1/8% senior second-lien secured notes due Feb. 15, 2028
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Truist Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Wells Fargo Securities LLC, CIBC World Markets Corp. and PNC Capital Markets LLC
|
| Co-manager: | Standard Chartered Bank
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| Coupon: | 6 1/8%
|
| Price: | 106.25
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| Yield to maturity: | 5.047%
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| Spread: | 407 bps
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| First call: | Feb. 15, 2023 at 103.063
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| Trade date: | Feb. 24
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| Settlement date: | March 3
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| Ratings: | Moody's: Ba3
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| S&P: B+
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 106 to 106.5
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| Marketing: | Drive-by
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| Original issue: | $600 million priced in February 2020
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