Published on 2/29/2024 in the Prospect News Investment Grade Daily.
New Issue: TPG Specialty Lending sells $600 million 5.875% 10-year notes at 165 bps spread
By Wendy Van Sickle
Columbus, Ohio, Feb. 29 – TPG Operating Group II, LP priced $600 million of 5.875% 10-year senior notes (A3/BBB+/BBB+) on Thursday at a spread of 165 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.903 to yield 5.888%.
The notes will be guaranteed by TPG Inc., TPG Operating Group I, LP, TPG Operating Group III, LP and TPG Holdings II Sub, LP.
Bookrunners were BofA Securities, Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and TPG Capital BD, LLC
Proceeds will be used to repay all or a portion of outstanding debt under the company’s senior revolving credit facility and senior term loan, as well as for general corporate purposes.
TPG is a private equity firm based in Fort Worth.
| Issuer: | TPG Operating Group II, LP
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| Guarantors: | TPG Inc., TPG Operating Group I, LP, TPG Operating Group III, LP and TPG Holdings II Sub, LP
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| Amount: | $600 million
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| Issue: | Senior notes
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| Maturity: | March 5, 2034
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| Bookrunners: | BofA Securities, Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and TPG Capital BD, LLC
|
| Co-managers: | Barclays, Citizens JMP Securities, LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., UBS Securities LLC, Loop Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Citigroup Global Markets Inc., SMBC Nikko Securities America, Inc., Academy Securities, Inc., Cabrera Capital Markets LLC, Siebert Williams Shank & Co., LLC and Stern Brothers & Co.
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| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Weil, Gotshal & Manges LLP and Davis Polk & Wardwell LLP
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP
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| Coupon: | 5.875%
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| Price: | 99.903
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| Yield: | 5.888%
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| Spread: | Treasuries plus 165 bps
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| Call feature: | Make-whole call at price equal to greater of par or Treasuries plus 25 bps; on or after Dec. 5, 2033 at par
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| Trade date: | Feb. 29
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| Settlement date: | March 5
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| Ratings: | Moody’s: A3
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
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| Cusip: | 872652AA0
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