Published on 9/17/2014 in the Prospect News High Yield Daily.
New Issue: Aecom Technology sells $1.6 billion eight-, 10-year senior notes
By Paul A. Harris
Portland, Ore., Sept. 17 – Aecom Technology Corp. sold $1.6 billion of senior notes (Ba3/BB-/) in two tranches on Wednesday, according to a syndicate source.
The deal included an $800 million tranche of eight-year notes, which priced at par to yield 5¾%. The yield printed at the tight end of yield talk in the 5 7/8% area.
Aecom Technology also priced an $800 million tranche of non-callable 10-year notes at par to yield 5 7/8%. The yield printed at the tight end of yield talk in the 6% area.
BofA Merrill Lynch, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, MUFG, Scotia Capital and Morgan Stanley & Co. LLC were the joint bookrunners.
The San Francisco-based provider of engineering, construction and technical services plans to use the proceeds, along with proceeds from a $1.83 billion credit facility, to help fund the acquisition of URS Corp. and to refinance debt at Aecom and URS.
| Issuer: | Aecom Technology Corp.
|
| Amount: | $1.6 billion
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, MUFG, Scotia Capital, Morgan Stanley & Co. LLC
|
| Co-managers: | BBVA, HSBC, SMBC Nikko, Wells Fargo Securities LLC
|
| Trade date: | Sept. 17
|
| Settlement date: | Oct. 6
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
|
| Amount: | $800 million
|
| Maturity: | Oct. 15, 2022
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 338 bps
|
| First call: | Oct. 15, 2017 at 104.313
|
| Price talk: | 5 7/8% area
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | Oct. 15, 2024
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | 330 bps
|
| Call protection: | Non-callable
|
| Price talk: | 6% area
|
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