By Paul A. Harris
Portland, Ore., Feb. 8 – Austin HoldCo Inc., which does business as Virtusa Corp., priced a downsized $50 million add-on to the Virtusa 7 1/8% senior notes due Dec. 15, 2028 (Caa2/CCC) at 98.51 to yield 7.404% on Tuesday, according to market sources.
The issue size decreased from $130 million.
The issue price came at the cheap end of the 98.51 to 99 price talk. Initial talk was in the 99 area.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Nomura Securities International Inc.
As a result of the $80 million downsize, proceeds were shifted to a concurrent term loan, which was upsized to $670 million from $590 million.
The Southborough, Mass.-based information technology services company plans to use the proceeds to fund a shareholder distribution.
| Issuers: | Austin HoldCo Inc. and Virtusa Corp.
|
| Amount: | $50 million, decreased from $130 million
|
| Issue: | Add-on to senior notes
|
| Maturity: | Dec. 15, 2028
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Nomura Securities International Inc.
|
| Coupon: | 7 1/8%
|
| Price: | 98.51
|
| Yield to maturity: | 7.404%
|
| First call: | Dec. 15, 2023 at 103.563
|
| Trade date: | Feb. 8
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| Settlement date: | Feb. 15
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| Ratings: | Moody's: Caa2
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| S&P: CCC
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 98.51 to 99
|
| Marketing: | Roadshow
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| Original issue: | $300 million priced in December 2020
|
| Fungibility: | Add-on notes to immediately become fungible with original notes
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