By Paul A. Harris
Portland, Ore., Feb. 7 – Artera Services, LLC priced a downsized $600 million issue of seven-year senior secured first-priority notes (B3/B-) at par to yield 8˝% on Wednesday, according to market sources.
The issue size decreased from $740 million.
The yield printed at the tight end of yield talk in the 8 5/8% area.
Prior to downsizing the offer was playing to demand in excess of $2 billion, a trader said.
Bookrunners were BofA Securities Inc., UBS Securities LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Jefferies LLC, Mizuho Securities USA Inc., MUFG Securities Americas Inc. and PNC Capital Markets LLC.
The $140 million downsize amount shifted to a concurrent seven-year first-lien term loan, which upsized to $930 million from $740 million, representing the transfer of proceeds to the loan from the bonds plus an additional $50 million of overall debt placed via the upsized loan.
The Atlanta-based infrastructure services provider plans to use the bond and loan proceeds plus balance sheet cash, a sponsor first-lien PIK term loan, and a sponsor contribution to repay its original first-lien term loan and second-lien term loan, to repay its receivables facility and to fully redeem the notes that are outstanding.
The additional $50 million will be used for general corporate purposes.
| Issuer: | Artera Services, LLC
|
| Amount: | $600 million
|
| Issue: | Senior secured first-priority notes
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| Maturity: | Feb. 15, 2031
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| Bookrunners: | BofA Securities Inc., UBS Securities LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Jefferies LLC, Mizuho Securities USA Inc., MUFG Securities Americas Inc. and PNC Capital Markets LLC
|
| Coupon: | 8˝%
|
| Price: | Par
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| Yield: | 8˝%
|
| Spread: | 441 bps
|
| First call: | Feb. 15, 2027 at 104.25
|
| Trade date: | Feb. 7
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| Settlement date: | Feb. 9
|
| Ratings: | Moody’s: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8 5/8% area
|
| Marketing: | Roadshow
|
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