By Paul A. Harris
Portland, Ore., Feb. 9 – Rand Parent, LLC priced an upsized $850 million issue of seven-year first-lien senior secured notes (Ba1/BB/BB+) at par to yield 8½% on Thursday, according to market sources.
The deal, backing the buyout of Atlas Air by Apollo, was upsized from $800 million.
The yield printed at the tight end of the 8½% to 8¾% yield talk. Initial guidance was in the 9% area.
The deal, which priced late Thursday afternoon, was hanging around par in the secondary market, a trader said.
Joint bookrunner Barclays will bill and deliver. Goldman Sachs & Co. LLC, Credit Agricole CIB, Mizuho Securities USA Inc. and Apollo Global Securities LLC were also bookrunners.
Proceeds plus proceeds from a concurrent $800 million term loan will be used to help fund the buyout of the company by Apollo, J.F. Lehman & Co. and Hill City Capital. The buyout has an enterprise valuation of about $5.2 billion and is expected to close in the first quarter of 2023.
The incremental proceeds resulting from the $50 million upsize of the deal will be used to repay about $32 million of existing aircraft debt (backed by one 2013 vintage 747-8F aircraft) and for general corporate purposes.
Atlas Air is a Purchase, N.Y.-based provider of outsourced aircraft and aviation operating services.
| Issuer: | Rand Parent, LLC
|
| Amount: | $850 million, increased from $800 million
|
| Issue: | First-lien senior secured notes
|
| Maturity: | Feb. 15, 2030
|
| Bookrunners: | Barclays (bill and deliver), Goldman Sachs & Co. LLC, Credit Agricole CIB, Mizuho Securities USA Inc. and Apollo Global Securities LLC
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 479 bps
|
| First call: | Feb. 15, 2026 at 104.25
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 17
|
| Ratings: | Moody's: Ba1
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% to 8¾%
|
| Marketing: | Roadshow
|
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