By Paul A. Harris
Portland, Ore., June 16 – Lummus Technology Inc. priced a $460 million issue of eight-year senior notes (Caa1/B-) at par to yield 9% on Tuesday, according to market sources.
Credit Suisse Securities (USA) LLC was the left bookrunner. Joint bookrunners were Macquarie Capital, RBC Capital Markets LLC, SG CIB, UBS Securities LLC and SunTrust Robinson Humphrey Inc.
The yield printed at the tight end of the 9% to 9¼% yield talk. Initial guidance was in the mid-to-high 9% area.
The deal underwent document changes, and the company disclosed to investors that it would make a $35 million draw on its revolving credit facility.
The notes were sold via Illuminate Buyer, LLC and Illuminate Holdings IV, Inc.
Proceeds, together with borrowings under the senior facilities and the equity contribution, will be used to fund the acquisition of the company by Rhone Capital and Chatterjee Group.
Lummus Technology is a developer and licensor of mission essential technologies for the refining and petrochemical industries and a supplier of catalysts and proprietary equipment.
| Issuers: | Illuminate Buyer, LLC and Illuminate Holdings IV, Inc.
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| Amount: | $460 million
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| Maturity: | July 1, 2028
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| Securities: | Senior notes
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| Left bookrunner: | Credit Suisse Securities (USA) LLC
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| Joint bookrunners: | Macquarie Capital, RBC Capital Markets LLC, SG CIB, UBS Securities LLC and SunTrust Robinson Humphrey Inc.
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| Coupon: | 9%
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| Price: | Par
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| Yield: | 9%
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| Spread: | 833.5 bps
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| First call: | July 1, 2023 at 104.5
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| Equity clawback: | 40% at 109 until July 1, 2023
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| Trade date: | June 16
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| Settlement date: | June 30
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| Ratings: | Moody's: Caa1
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 9% to 9¼%
|
| Marketing: | Roadshow
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