By Paul A. Harris
Portland, Ore., June 24 – Ambience Merger Sub, Inc. priced $800 million of high-yield notes backing the buyout of At Home Group, Inc. by Hellman & Friedman, according to market sources.
The deal, which priced on Thursday, came in two tranches.
It featured a $300 million tranche of seven-year senior secured notes (B1/B) that priced at par to yield 4 7/8%. The yield printed at the tight end of yield talk in the 5% area. Initial guidance was 5¼% to 5½%.
The deal also included a $500 million tranche of eight-year senior unsecured notes (Caa1/CCC+) that priced at par to yield 7 1/8%. The yield printed at the tight end of yield talk in the 7¼% area. Initial guidance had the unsecured notes coming 200 basis points behind the secured notes. Joint bookrunner Barclays will bill and deliver.
Proceeds will be used to finance the acquisition of At Home Group by Hellman & Friedman in an all-cash transaction valued at $2.8 billion, including the assumption of debt, expected to close in the third quarter of 2021.
Following the closing of the acquisition the issuer will become At Home Group.
| Issuer: | Ambience Merger Sub, Inc., following merger At Home Group, Inc.
|
| Amount: | $800 million
|
| Bookrunners: | Barclays (bill and deliver), BofA Securities Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., PNC Capital Markets LLC, U.S. Bancorp Investments Inc.
|
| Trade date: | June 24
|
| Settlement date: | July 12
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
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| Amount: | $300 million
|
| Maturity: | July 15, 2028
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 362 bps
|
| First call: | July 15, 2023 at 102.438
|
| Special call: | 10% of notes annually at 103 during non-call period
|
| Ratings: | Moody's: B1
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| S&P: B
|
| Price talk: | 5% area
|
|
|
| Senior unsecured notes
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| Amount: | $500 million
|
| Maturity: | July 15, 2029
|
| Coupon: | 7 1/8%
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| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 577 bps
|
| First call: | July 15, 2024 at 103.563
|
| Ratings: | Moody's: Caal
|
| S&P: CCC+
|
| Price talk: | 7¼% area
|
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