By Paul A. Harris
Portland, Ore., Dec. 1 – Artera Services, LLC priced a $250 million add-on to the PowerTeam Services, LLC 9.033% senior secured first-priority notes due Dec. 4, 2025 (B3/B-) at 108 on Tuesday, according to market sources.
The execution rendered a 6.796% yield to worst and a 7.103% yield to maturity.
The issue price came at the rich end of the 107.5 to 108 price talk and rich to initial guidance in the 107.5 area.
Joint physical bookrunner UBS Securities LLC will bill and deliver. BNP Paribas Securities Corp. was also a joint physical bookrunner. Joint bookrunners were Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp., MUFG, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and BofA Securities Inc.
Proceeds will be used for general corporate purposes, which may include paying all or a portion of future possible strategic acquisitions. Pending that, proceeds will be used to repay debt under the existing first-lien revolver and receivables facility.
Artera Services, formerly known as PowerTeam Services, is a Plymouth, Mich.-based provider of services to electric and gas utilities.
| Issuer: | Artera Services, LLC (formerly PowerTeam Services, LLC)
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| Amount: | $250 million
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| Maturity: | Dec. 4, 2025
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| Security description: | Add-on to PowerTeam Services 9.033% senior secured first priority notes due Dec. 4, 2025
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| Physical bookrunners: | UBS Securities LLC (bill and deliver) and BNP Paribas Securities Corp.
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| Joint bookrunners: | Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp., MUFG, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and BofA Securities Inc.
|
| Coupon: | 9.033%
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| Price: | 108
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| Yield to worst: | 6.796%
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| Yield to maturity: | 7.103%
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| First call: | Dec. 4, 2023 at 104.517
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| Equity clawback: | 40% at 109.033 until Dec. 4, 2023
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| Trade date: | Dec. 1
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| Settlement date: | Dec. 4 with accrued interest
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| Ratings: | Moody's: B3
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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: | 107.5 to 108
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| Marketing: | Drive-by
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| Original issue: | $586,735,000 priced in May 2020
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| Previous add-on: | $150 million priced in June 2020
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| Fungibility: | New Rule 144A add-on notes to immediately become fungible with existing notes, Regulation S notes to become fungible with existing notes after 40 days
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