New Issue: Primo Water sells $750 million eight-year notes at par to yield 4 3/8%

By Paul A. Harris

Portland, Ore., April 21 – Primo Water Holdings Inc. priced a $750 million issue of eight-year senior notes (B1/B) at par to yield 4 3/8% in a Wednesday drive-by, according to market sources.

The yield printed on top of yield talk and tight to initial guidance in the mid-4% area.

BofA Securities Inc. was the left bookrunner. Joint bookrunners were Deutsche Bank Securities Inc., CIBC World Markets Corp., J.P. Morgan Securities LLC, Truist Securities Inc. and Wells Fargo Securities LLC.

The Tampa, Fla.-based purified water supplier plans to use the proceeds plus cash on hand and a draw on its revolver to redeem all of its 5½% senior notes due 2025.

Issuer:	Primo Water Holdings Inc.
Amount:	$750 million
Maturity:	April 30, 2029
Securities:	Senior notes
Left bookrunner:	BofA Securities Inc.
Joint bookrunners:	Deutsche Bank Securities Inc., CIBC World Markets Corp., J.P. Morgan Securities LLC, Truist Securities Inc. and Wells Fargo Securities LLC
Coupon:	4 3/8%
Price:	Par
Yield:	4 3/8%
Spread:	304 bps
First call:	Make-whole call at Treasuries plus 50 bps until April 30, 2024, then callable at 102.188
Equity clawback:	40% at 104.375 until April 30, 2024
Trade date:	April 21
Settlement date:	April 30
Ratings:	Moody's: B1
	S&P: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	4 3/8%
Marketing:	Drive-by

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.