By Paul A. Harris
Portland, Ore., Oct. 8 – Alliant Holdings Intermediate LLC and Alliant Holdings Co-Issuer priced an upsized $875 million amount of high-yield notes in two tranches on Thursday, according to market sources.
The upsize came in the secured tranche of five-year senior secured notes (B2/B), which grew to $525 million from $425 million. It priced at par to yield 4¼%, on top of final yield talk and tight to earlier talk of 4¼% to 4½%.
The deal also featured a $350 million add-on to the 6¾% senior unsecured notes due Oct. 15, 2027 (Caa2/CCC+), which priced at 103 to yield 6.215%. The issue price came on top of final price talk and on the rich end of earlier 102.5 to 103 talk.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Truist Securities Inc., BofA Securities Inc., Capital One Securities Inc., Goldman Sachs & Co. LLC, RBC Capital Markets Corp., Fifth Third Securities Inc., KKR and Macquarie Capital (USA) Inc. were the joint bookrunners.
The overall size of the deal increased from $775 million with the shift of proceeds to the secured notes from Alliant's first-lien term loan B3, which was downsized to $325 million from $425 million.
The Eden Prairie, Minn.-based insurance brokerage plans to use the proceeds from its notes and loans, plus cash on its balance sheet, to make the 2020 special distribution, also for acquisitions of businesses under a letter of intent, with the remainder of proceeds, if any, to be used for general corporate purposes.
| Issuers: | Alliant Holdings Intermediate LLC and Alliant Holdings Co-Issuer
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| Amount: | $875 million, increased from $775 million
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| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Truist Securities Inc., BofA Securities Inc., Capital One Securities Inc., Goldman Sachs & Co. LLC, RBC Capital Markets Corp., Fifth Third Securities Inc., KKR and Macquarie Capital (USA) Inc.
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| Trade date: | Oct. 8
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| Settlement date: | Oct. 15
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| Distribution: | Rule 144A and Regulation S for life
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|
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| Secured notes
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| Amount: | $525 million, increased from $425 million
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| Maturity: | Oct. 15, 2027
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| Securities: | Senior secured notes
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| Coupon: | 4¼%
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| Price: | Par
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| Yield: | 4¼%
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| Spread: | 371 bps
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| First call: | Oct. 15, 2023 at 102.125
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| Ratings: | Moody's: B2
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| S&P: B
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| Price talk: | 4¼% from 4¼% to 4½%
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| Unsecured notes
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| Amount: | $350 million
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| Maturity: | Oct. 15, 2027
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| Security description: | Add-on to 6¾% senior unsecured notes due Oct. 15, 2027
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| Coupon: | 6¾%
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| Price: | 103
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| Yield to maturity: | 6.215%
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| Spread: | 564.6 bps
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| First call: | Oct. 15, 2022 at 103.375
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| Ratings: | Moody's: Caa2
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| S&P: CCC+
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| Price talk: | 103, from 102.5 to 103
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| Original issue: | $690 million priced in October 2019
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| Previous add-on: | $300 million priced in April 2020
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