New Issue: Arko prices $450 million eight-year notes at par to yield 5 1/8%

By Paul A. Harris

Portland, Ore., Oct. 14 – Arko Corp. priced a $450 million issue of eight-year senior notes (B3/B-) at par to yield 5 1/8% on Thursday, according to market sources.

The yield printed in the middle of the 5% to 5¼% yield talk and at the wide end of initial guidance in the 4% area.

BofA Securities Inc. was at the left of a syndicate of deal managers that also included Capital One Securities Inc., KeyBanc Capital Markets Inc. and Santander Investment Securities Inc.

The Richmond, Va.-based convenience store operator plans to use the proceeds to permanently pay off approximately $223 million outstanding under the Ares credit agreement, as well as to repay approximately $200 million of the outstanding obligations under the GPMP Capital One line of credit, with the remainder of the proceeds to be used for general corporate purposes.

Issuer:	Arko Corp.
Amount:	$450 million
Maturity:	Nov. 15, 2029
Securities:	Senior notes
Bookrunners:	BofA Securities Inc., Capital One Securities Inc., KeyBanc Capital Markets Inc. and Santander Investment Securities Inc.
Co-managers:	Citizens Capital Markets Inc., Fifth Third Securities Inc., M&T Securities Inc., PNC Capital Markets LLC, Raymond James & Associates and Truist Securities Inc.
Coupon:	5 1/8%
Price:	Par
Yield:	5 1/8%
Spread:	373 bps
First call:	Nov. 15, 2024 at 102.563
Trade date:	Oct. 14
Settlement date:	Oct. 21
Ratings:	Moody's: B3
	S&P: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	5% to 5¼%
Marketing:	Roadshow

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.