New Issue: Aecom sells upsized $1 billion 10-year bullet at par to yield 5 1/8%

By Paul A. Harris

Portland, Ore., Feb. 15 – Aecom priced an upsized $1 billion issue of 10-year senior bullet notes (Ba3/BB) at par to yield 5 1/8% in a Wednesday drive-by, according to market sources.

The issue size was increased from $750 million.

The yield printed in the middle of the 5% to 5¼% yield talk and in line with initial guidance in the low 5% area.

BofA Merrill Lynch was the left bookrunner. J.P. Morgan Securities LLC was the joint bookrunner.

The Los Angeles-based engineering company, formerly known as Aecom Technology Corp., plans to use the proceeds to refinance its term loan and revolving credit facility.

Issuer:	Aecom
Amount:	$1 billion, increased from $750 million
Maturity:	March 15, 2027
Securities:	Senior notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunner:	J.P. Morgan Securities LLC
Co-managers:	BNP Paribas Securities Corp., MUFG, Scotia Capital, Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole CIB, HSBC Securities (USA) Inc., SMBC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc.
Coupon:	5 1/8%
Price:	Par
Yield:	5 1/8%
Spread:	262 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until three months prior to maturity, then callable at par; otherwise non-callable
Trade date:	Feb. 15
Settlement date:	Feb. 21
Ratings:	Moody's: Ba3
	S&P: BB
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	5% to 5¼%
Marketing:	Quick to market

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