By Paul A. Harris
Portland, Ore., Nov. 5 – Railworks Holdings, LP and Railworks Rally, Inc. priced a $325 million issue of 8¼% seven-year senior secured second-lien notes (B2/B) at 98.503 to yield 8 5/8% on Thursday, according to market sources.
The coupon came on top of coupon talk. The yield printed at the tight end of yield talk in the 8¾% area. Initial guidance had the notes coming to yield in the mid-to-high 8% area.
J.P. Morgan Securities LLC and BMO Capital Markets Corp. were the joint bookrunners.
Proceeds will be used to fund the acquisition of the Chicago-based company by Bernhard Capital Partners Management from Wind Point Partners.
Railworks builds and maintains transportation infrastructure.
| Issuers: | Railworks Holdings, LP and Railworks Rally, Inc.
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| Amount: | $325 million
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| Maturity: | Nov. 15, 2028
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| Securities: | Senior secured second-lien notes
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| Bookrunners: | J.P. Morgan Securities LLC and BMO Capital Markets Corp.
|
| Coupon: | 8¼%
|
| Price: | 98.503
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| Yield: | 8 5/8%
|
| Spread: | 725 bps
|
| Call protection: | Three years
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| Trade date: | Nov. 4
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| Settlement date: | Nov. 9
|
| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¼% coupon at a discount to yield in 8¾% area
|
| Marketing: | Roadshow
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