By Paul A. Harris
Portland, Ore., March 1 – Ritchie Bros. Auctioneers Inc. priced $1.35 billion of notes in two tranches on Wednesday, according to market sources.
The deal included $550 million of five-year senior secured notes (Ba2/BB+) that priced at par to yield 6¾%. The yield printed 12.5 bps tighter than the 6 7/8% to 7 1/8% yield talk. Initial guidance was in the low 7% area.
The issuance also included $800 million of eight-year senior notes (B1/BB-) that priced at par to yield 7¾%. The unsecured notes also came 12.5 bps tighter than the yield talk that had been set at 7 7/8% to 8 1/8%. Initial guidance had them pricing 100 basis points behind the secured notes.
Goldman Sachs was the left bookrunner. Joint bookrunners were BofA, RBC and Wells Fargo.
The notes were sold via Ritchie Bros. Holdings Inc.
The Vancouver, B.C.-based auction company plans to use the proceeds plus its term loan A and balance sheet cash to fund the cash portion of its acquisition of IAA Inc., as well as to refinance IAA’s debt, repay all of Ritchie Bros.’ debt, including its 2016 notes, and to pay the Ritchie Bros. special dividend.
| Issuer: | Ritchie Bros. Holdings Inc.
|
| Amount: | $1.35 billion
|
| Trade date: | March 1
|
| Settlement date: | March 15
|
| Left bookrunner: | Goldman Sachs
|
| Joint bookrunners: | BofA, RBC and Wells Fargo
|
| Co-managers: | Scotia, CIBC, U.S. Bancorp, Truist, MUFG, HSBC and Citizens
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Senior secured notes
|
| Amount: | $550 million
|
| Maturity: | March 15, 2028
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 246 bps
|
| Call protection: | Two years
|
| Ratings: | Moody's: Ba2
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| Fitch: BB+
|
| Price talk: | 6 7/8% to 7 1/8%
|
|
|
| Senior notes
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| Amount: | $800 million
|
| Maturity: | March 15, 2031
|
| Coupon: | 7¾%
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| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 378 bps
|
| Call protection: | Three years
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Price talk: | 7 7/8% to 8 1/8%
|
|
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