Howden talks $1.25 billion notes in secured, unsecured tranches; pricing Friday

By Paul A. Harris

Portland, Ore., Feb. 1 – Howden Group (B2/B) set price talk in its $1.25 billion two-part offering of high-yield notes on Thursday, according to market sources.

The Rule 144A and Regulation S for life deal includes a $750 million tranche of Howden UK Refinance plc/Howden US Refinance LLC seven-year senior secured notes (B2/B) talked to yield in the 7 3/8% area, tight to initial guidance in the mid-7% area.

The offering also features a $500 million tranche of Howden UK Refinance 2 plc/Howden US Refinance LLC eight-year senior notes (Caa1/CCC+) talked to yield in the 8 3/8% area, tight to initial guidance in the mid-8% area.

Books were scheduled to close on Thursday, and the notes are set to price on Friday.

The notes in both tranches come with three years of call protection.

Morgan Stanley, JPMorgan, BofA, Barclays, Goldman Sachs, RBC, Citigroup, HSBC, ING, Lloyds, NatWest, Santander and Howden Capital Tiger Markets & Advisory are the joint bookrunners.

The London-based insurance intermediary group plans to use the proceeds plus proceeds from concurrent dollar- and euro-denominated term loans to refinance a portion of its outstanding dollar-denominated term loan, to pay off its outstanding euro-denominated term loans, to pay off its second-lien facility and for general corporate purposes.

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