By Paul A. Harris
Portland, Ore., April 14 – Oldcastle BuildingEnvelope (Oscar AcquisitionCo LLC) priced a downsized $585 million issue of 9½% eight-year senior notes (Caa1/CCC+) at 92.19 to yield 11% on Thursday, according to market sources.
The deal came in line with upwardly revised talk, which specified a 9½% coupon and an 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.
The deal was heard to be oversubscribed at the revised talk, according to a portfolio manager.
A sizable portion of the notes was heard to have been taken down in big orders from a small number of accounts, a sellside source said.
The notes underwent covenant changes which primarily bear upon how the company may disburse cash and incur additional debt.
J.P. Morgan Securities LLC was at the left of a syndicate of joint bookrunners that also included Citigroup Global Markets Inc., BNP Paribas Securities Corp., Mizuho Securities USA Inc., Macquarie Capital (USA) Inc., Goldman Sachs & Co. LLC, MUFG, Stifel Nicolaus & Co. Inc.
The bond offering was downsized from $985 million, as a contemplated $400 million tranche of seven-year senior secured notes (B1/B) was withdrawn from the market and those proceeds were shifted to a concurrent term loan, increasing the loan size to $1.685 billion from $1.285 billion.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.
| Issuer: | Oldcastle BuildingEnvelope (Oscar AcquisitionCo LLC)
|
| Amount: | $585 million
|
| Issue: | Senior notes
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| Maturity: | April 15, 2030
|
| Bookrunners: | 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, Stifel Nicolaus & Co. Inc.
|
| Coupon: | 9½%
|
| Price: | 92.19
|
| Yield: | 11%
|
| Spread: | 825 bps
|
| First call: | April 15, 2025 at 104.75
|
| Trade date: | April 14
|
| Settlement date: | April 29
|
| Ratings: | Moody's: Caa1
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| S&P: CCC+
|
| Distribution: | Rule 144A
|
| Price talk: | 9½% coupon at 92.19 to 90.96, to yield 11% to 11¼%
|
| Marketing: | Roadshow
|
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