Patagonia sets roadshow for $500 million seven-year secured notes; initial talk 7½% at 86

By Paul A. Harris

Portland, Ore., July 18 – Patagonia Holdco LLC plans to start a roadshow on Wednesday for a $500 million offering of seven-year senior secured first-lien notes (B1/B+), according to market sources.

The Rule 144A and Regulation S for life deal comes in support of the buyout of Lumen Technologies' Latin American operations by Stonepeak.

Initial guidance indicates that the issuer is attempting to place paper that would pay a 7½% coupon and contemplates an original issue discount of 86.

An investor call is scheduled to get underway at 10 a.m. ET on Wednesday.

The roadshow wraps up on July 26, with books set to close at 5 p.m. ET on that day.

JPMorgan, Goldman Sachs, Citigroup, BofA, Natixis; Deutsche Bank and Scotia are the joint bookrunners.

Proceeds will be used to fund the acquisition of Lumen's Latin American business by Stonepeak for $2.7 billion.

The surviving entity will operate as an independent, U.S.-based portfolio company of Stonepeak, according to a Monday press release from Lumen.

The current Latin American leadership team and organization will remain in place, the release added.

Debt financing for the acquisition also includes an $800 million term loan being marketed on a concurrent timeline with the first-lien notes.

© 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.