Husky talks $450 million offering of five-year PIK toggle notes with 12¾%-13% coupon at 98-99

By Paul A. Harris

Portland, Ore., Feb. 10 – Husky Injection Molding Systems Ltd. talked a $450 million offering of Husky III Holding Ltd. five-year senior PIK toggle notes (Caa2/CCC) with a 12¾% to 13% coupon at 98 to 99, according to market sources.

The coupon steps up by 75 basis points for PIK payments.

Along with official talk came document changes primarily bearing upon how the company may incur additional debt and disburse cash.

In addition, call protection was modified, with the first call premium increasing to par plus 75% of the coupon after one year. Prior to the revision, the year one call premium was 102.

Books close at 4 p.m. ET on Monday.

Pricing on Husky’s Rule 144A and Regulation S for life deal has pushed higher since the company set off with the notes on an investor roadshow during the Feb. 3 week, market sources say.

Initial price talk was in the 12% area.

BofA Securities Inc. is the left bookrunner. Deutsche Bank Securities Inc., Goldman Sachs & Co., Barclays, BMO Securities, NBOC and TD Securities are the joint bookrunners.

The Bolton, Ont.-based supplier of machinery for injection molding of plastics plans to use the proceeds to return capital to shareholders and pay certain fees.

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