| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers O > Headlines for Oscar AcquisitionCo LLC > News item |
Oldcastle downsizes to $585 million, talks 9½% eight-year notes at big discount to yield 11%-11¼%
By Paul A. Harris
Portland, Ore., April 14 – Oldcastle BuildingEnvelope (Oscar AcquisitionCo LLC) is making major concessions to investors in an attempt to place a downsized $585 million amount of junk bonds, according to market sources.
The revised deal is coming as a single tranche of eight-year senior unsecured notes (Caa1/CCC+) talked with a 9½% coupon and a contemplated original issue discount ranging from 92.19 on the rich end to 90.96 on the cheap end, to yield 11% to 11¼%.
That talk widened substantially from initial guidance in the mid-to-high 9% area, sources say.
Books were scheduled to close at 10 a.m. ET on Thursday.
The issuer, dealers and investors were negotiating the covenant package of the notes up to the 11th hour, according to a high-yield portfolio manager, who said that the deal is heard to be well oversubscribed at revised price and yield talk.
The investor, who agreed to speak on background, added that the deal will probably price later on Thursday.
The struggling junk bond deal was downsized from $985 million, as a contemplated $400 million tranche of seven-year senior secured notes (B1/B) was withdrawn from the market, and those proceeds were shifted to a concurrent term loan.
Joint bookrunners for the bonds are J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Mizuho Securities USA Inc., Macquarie Capital (USA) Inc., Goldman Sachs & Co. LLC, MUFG and Stifel Nicolaus & Co. Inc.
The Rule 144A notes come with three years of call protection.
With the shift of proceeds resulting from the withdrawal of the $400 million secured notes tranche, the term loan upsized to $1.685 billion from $1.285 billion.
Proceeds from the bonds and loan will be used to help fund the buyout of the company by KPS Capital Partners LP from CRH plc.
Oldcastle BuildingEnvelope is a Dallas-based building supplies and services company.
© 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.