By Paul A. Harris
Portland, Ore., Nov. 10 – PROG Holdings, Inc. priced a $600 million issue of eight-year senior notes (B1/BB-) at par to yield 6% on Wednesday, according to market sources.
Pricing on the deal backed up while it was in the market, a trader said.
The yield printed at the wide end of the 5¾% to 6% yield talk. Initial guidance, meanwhile, was in the mid-5% area.
Investors were heard to receive full allocations of the notes, a trader said.
The new PROG Holdings 6% notes due 2029 were in the secondary market in a context of 99½ bid, par ½ offered at Wednesday's close, the trader added, noting that the deal actually broke too late in the day for it to actually trade.
J.P. Morgan Securities LLC was the lead.
Proceeds will be used to repurchase shares of common stock pursuant to a tender offer, for future repurchases of common stock or potentially for general corporate purposes, depending on the results of the share buybacks.
PROG is a fintech holding company based in Salt Lake City. It owns Progressive Leasing, Vive Financial and Four Technologies.
| Issuer: | PROG Holdings, Inc.
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| Amount: | $600 million
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| Maturity: | Nov. 15, 2029
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| Securities: | Senior notes
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| Lead: | J.P. Morgan Securities LLC
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Spread: | 457 bps
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| Call protection: | Three years
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| Trade date: | Nov. 10
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| Settlement date: | Nov. 26
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 5¾% to 6%
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| Marketing: | Roadshow
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