By Paul A. Harris
Portland, Ore., Oct. 15 – Albion HoldCo Ltd. priced three tranches of high-yield notes backing the buyout of Aggreko plc on Friday, according to market sources.
The deal included approximately £790 million equivalent amount of five-year senior secured notes (B1/BB-/BB+), upsized from approximately £700 million equivalent.
A $565 million tranches priced at par to yield 6 1/8%, at the wide end of yield talk in the 6% area.
A €450 million tranche priced at par to yield 5¼%, at the wide end of the 5% to 5¼% yield talk.
The deal also included a downsized $450 million tranche of 5.5-year senior unsecured notes (B3/B/BB-) that priced at par to yield 8¾%, at the wide end of the 8½% to 8¾% yield talk. The tranche size decreased from $485 million.
Left bookrunner and joint global coordinator Barclays will bill and deliver. BofA Securities is also a joint global coordinator. Joint bookrunners were Deutsche Bank, Goldman Sachs, HSBC, Lloyds, Santander, SMBC and Standard Chartered.
Proceeds will be used to fund the acquisition of Aggreko, a Glasgow, U.K.-based producer of modular power generation and temperature control equipment, by I Squared Capital & TDR Capital, and to refinance debt.
| Issuer: | Albion HoldCo Ltd.
|
| Left bookrunner: | Barclays (bill and deliver)
|
| Joint global coordinators: | Barclays and BofA Securities
|
| Joint bookrunners: | Deutsche Bank, Goldman Sachs, HSBC, Lloyds, Santander, SMBC and Standard Chartered
|
| Trade date: | Oct. 15
|
| Settlement date: | Oct. 22
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Dollar secured notes
|
| Amount: | $565 million
|
| Issue: | Senior secured notes
|
| Maturity: | Oct. 15, 2026
|
| Coupon: | 6 1/8%
|
| Price: | Par
|
| Yield: | 6 1/8%
|
| Spread: | 501 bps
|
| First call: | Oct. 15, 2023 at 103.063
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Fitch: BB+
|
| Price talk: | 6% area
|
|
|
| Euro secured notes
|
| Amount: | €450 million
|
| Issue: | Senior secured notes
|
| Maturity: | Oct. 15, 2026
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 580 bps
|
| First call: | Oct. 15, 2023 at 102.625
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Fitch: BB+
|
| Price talk: | 5% to 5¼%
|
|
|
| Unsecured notes
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| Amount: | $450 million
|
| Issue: | Senior unsecured notes
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| Maturity: | April 15, 2027
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Spread: | 729 bps
|
| First call: | Oct 15, 2023 at 104.375
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Fitch: BB-
|
| Price talk: | 8½% to 8¾%, revised from 8% area
|
|
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