By Paul A. Harris
Portland, Ore., Jan. 27 – Endure Digital Inc. priced an upsized $685 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 6% on Wednesday, according to market sources.
The issue size increased from $640 million.
The yield printed 25 basis points tighter than the 6¼% to 6½% yield talk.
Prior to that official talk coming out, on Wednesday morning, the deal was in the market with early guidance in the 7% area. Hence, in the space of a day pricing took a dramatic fall to 6% from 7%, a trader said, adding that the deal was heard to be playing to $3 billion of orders, on Wednesday morning.
The notes were trading at par ¼ bid, 101¼ offered at Wednesday’s close, the trader said.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Barclays, BNP Paribas Securities Corp., Mizuho Securities USA Inc., RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC and Jefferies LLC.
Proceeds plus a new bank loan and equity will be used to fund the merger of Endure Digital with EIG Investors Corp.
The issuer is a Burlington, Mass.-based provider of cloud-based platform solutions for business.
| Issuer: | Endure Digital Inc., to be merged with and into Endurance International Group upon closing of the Endurance acquisition, with Endurance surviving
|
| Amount: | $685 million
|
| Maturity: | Feb. 15, 2029
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Barclays, BNP Paribas Securities Corp., Mizuho Securities USA Inc., RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC and Jefferies LLC
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 518 bps
|
| First call: | Feb. 15, 2024 at 103
|
| Trade date: | Jan. 27
|
| Settlement date: | Feb. 10
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6¼% to 6½%
|
| Marketing: | Roadshow
|
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