Ardonagh talks $500 million 6.5-year PIK toggle notes with 11½% cash coupon at 99

By Paul A. Harris

Portland, Ore., June 24 – Ardonagh Midco 2 plc talked its $500 million offering of 6.5-year senior PIK toggle notes (//CCC) with an 11½% cash coupon, which would step up by 100 basis points to 125 bps for PIK coupon payments, at a reoffer price of 99, according to a syndicate source.

Books close at 10 a.m. ET on Thursday, and the deal is set to price thereafter.

BofA Securities Inc. is the left global coordinator. Barclays and Deutsche Bank Securities Inc. are the joint global coordinators.

Goldman Sachs & Co. and NatWest Investments are the joint bookrunners.

The Rule 144A and Regulation S for life notes come with two years of call protection.

The London-based insurance brokerage plans to use the proceed, together with certain proceeds from its term facility, to fund the redemption of its existing notes, as well as to repay drawn amounts under its revolver, to fund the Arachas, Bravo and Bennetts acquisitions and for general corporate purposes.

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