Published on 9/22/2023 in the Prospect News High Yield Daily.
New Issue: NCR Atleos sells upsized $1.35 billion 9˝% secured notes due April 2029 at 98.75
By Paul A. Harris
Portland, Ore., Sept. 22 – NCR Atleos Escrow Corp. priced an upsized and restructured $1.35 billion issue of 9˝% senior secured notes due April 1, 2029 (B2/B+/BB-) at 98.75 to yield 9.798% on Friday, according to market sources.
The yield printed slightly wide to yield talk in the 9˝% area.
The maturity of the notes decreased to 5.5 years from seven years, while call protection remained unchanged at three years.
The $300 million upsize of the bonds represents a shift of proceeds from the concurrent term loan, which was downsized to $750 million from $1.05 billion.
Proceeds from the bonds and loan will be used to fund the spinoff of NCR Atleos into two separate companies: NCR Voyix, which will focus on digital commerce, and NCR Atleos, an ATM-focused business. The spinoff is expected to close in the fourth quarter. Proceeds will be escrowed until the spinoff closes.
NCR Atleos is an Atlanta-based financial technology company providing self-directed banking solutions through automated teller machines and interactive teller machines.
| Issuer: | NCR Atleos Escrow Corp.
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| Amount: | $1.35 billion, upsized from $1.05 billion
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| Issue: | Senior secured notes
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| Maturity: | April 1, 2029, maturity decreased to 5.5 years from seven years
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, RBC Capital Markets LLC, Capital One Securities Inc., Citigroup Global Markets Inc., Fifth Third Securities Inc., M&T Securities Inc., MUFG Securities Americas Inc., PNC Capital Markets LLC, Regions Securities LLC, TD Securities (USA) LLC, Truist Securities Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Barclays and Santander US Capital Markets LLC
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| Coupon: | 9˝%
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| Price: | 98.75
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| Yield: | 9.798%
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| Spread: | 522 bps
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| First call: | Oct. 1, 2026 at 104.75
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| Trade date: | Sept. 22
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| Settlement date: | Sept. 27
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| Ratings: | Moody’s: B2
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| S&P: B+
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 9˝% area
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| Marketing: | Roadshow
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