Published on 12/7/2021 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Ritchie Bros. sells $600 million 4¾% notes, C$425 million 4.95% notes
By Paul A. Harris
Portland, Ore., Dec. 7 – Ritchie Bros. priced two upsized tranches of senior notes (Ba3/BB) in a cross-border Tuesday trade that was a blowout, according to market sources.
Ritchie Bros. Holdings Inc. priced an upsized $600 million tranche of 10-year notes at par to yield 4¾%. The tranche size increased from $500 million. The yield printed at the tight end of the 4¾% to 5% yield talk. Initial guidance in the low-to-mid 5% area. Goldman Sachs was the left bookrunner.
Ritchie Bros. Holdings Ltd. priced an upsized C$425 million tranche of eight-year notes at par to yield 4.95%. The tranche size increased from C$350 million. The yield printed tight to yield talk in the 5% area. Initial guidance was in the low 5% area. RBC was the left bookrunner for the Canadian dollar-denominated tranche.
The Vancouver, B.C.-based auctioneer of industrial equipment plans to use the proceeds from both tranches plus its delayed-draw term loan and cash on hand or available under its revolver to fund the acquisitions of Euro Auctions Ltd., William Keys & Sons Holdings Ltd., Equipment & Plant Services Ltd. and Equipment Sales Ltd. Remaining proceeds plus cash on hand or borrowings under existing credit facilities will be held in escrow and used to prefund accrued interest, pending completion of the acquisitions.
| Company: | Ritchie Bros.
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| Securities: | Senior notes
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| Trade date: | Dec. 7
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| Settlement date: | Dec. 21
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| Ratings: | Moody's: Ba3
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| S&P: BB
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|
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| U.S. dollar notes
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| Issuer: | Ritchie Bros. Holdings Inc.
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| Amount: | $600 million, increased from $500 million
|
| Maturity: | Dec. 15, 2031
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| Left bookrunner: | Goldman Sachs
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| Joint bookrunners: | RBC and BofA Securities
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| Co-managers: | BMO, CIBC, Citizens, HSBC, MUFG, Scotia and U.S. Bancorp
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| Coupon: | 4¾%
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| Price: | Par
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| Yield: | 4¾%
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| Spread: | 328 bps
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| Call protection: | Five years
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| Price talk: | 4¾% to 5%
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| Canadian dollar notes
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| Issuer: | Ritchie Bros. Holdings Ltd.
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| Amount: | C$425 million, increased from C$350 million
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| Maturity: | Dec. 15, 2029
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| Left bookrunner: | RBC
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| Joint bookrunners: | Goldman Sachs and BofA Securities
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| Co-managers: | BMO, CIBC, HSBC, MUFG and Scotia
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| Coupon: | 4.95%
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| Price: | Par
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| Yield: | 4.95%
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| Spread: | 346.2 bps
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| Call protection: | Three years
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| Price talk: | 5% area
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