Published on 4/21/2020 in the Prospect News High Yield Daily.
New Issue: Alliant Holdings prices $300 million tap of 6¾% notes due 2027 at par
By Paul A. Harris
Portland, Ore., April 21 – Alliant Holdings Intermediate LLC and Alliant Holdings Co-Issuer priced a $300 million add-on to their 6¾% senior notes due Oct. 15, 2027 (existing ratings Caa2/CCC+) at par to yield 6¾% in a Tuesday drive-by, according to market sources.
Morgan Stanley & Co. LLC was the lead left bookrunner. Joint bookrunners were SPC Capital Markets LLC, BofA Securities Inc., Capital One Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co. LLC, Jefferies LLC, KKR Capital Markets LLC, Macquarie Capital (USA) Inc., Nomura Securities International Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
The issue price came in the middle of price talk in the par area. Initial talk was 99.5 to par.
The Eden Prairie, Minn.-based insurance brokerage plans to use the proceeds to pay off its senior secured revolving credit facility and for general corporate purposes.
| Issuers: | Alliant Holdings Intermediate LLC and Alliant Holdings Co-Issuer
|
| Amount: | $300 million
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| Maturity: | Oct. 15, 2027
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| Security description: | Add-on to 6¾% senior notes due Oct. 15, 2027
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| Lead left bookrunner: | Morgan Stanley & Co. LLC
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| Joint bookrunners: | SPC Capital Markets LLC, BofA Securities Inc., Capital One Securities Inc., Fifth Third Securities Inc., Goldman Sachs & Co. LLC, Jefferies LLC, KKR Capital Markets LLC, Macquarie Capital (USA) Inc., Nomura Securities International Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6¾%
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| Price: | Par
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| Yield to maturity: | 6¾%
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| Spread: | 630 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Oct 15, 2022, then callable at 103.375
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| Equity clawback: | 40% at 106.75 until Oct. 15, 2022
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| Trade date: | April 21
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| Settlement date: | April 28
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| Existing ratings: | Moody's: Caa2
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| S&P: CCC+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | Par area
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| Marketing: | Drive-by
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| Original issue: | $690 million priced in October 2019
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