By Paul A. Harris
Portland, Ore., April 16 – CDW Corp. priced an upsized $600 million issue of five-year senior notes (Ba2/BB-) at par to yield 4 1/8% on Thursday, according to market sources.
Bookrunners were J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, Barclays, MUFG and BofA Securities Inc.
The issue size increased from $500 million.
The yield printed at the tight end of yield talk in the 4¼% area.
The deal was seven-times oversubscribed, according to a bond trader, who had the new CDW 4 1/8% notes due 2025 at 101¼ bid, 101¾ offered at Thursday's close.
The Lincolnshire, Ill.-based technology company plans to use the proceeds for general corporate purpose.
| Issuers: | CDW LLC and CDW Finance Corp.
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | May 1, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, Barclays, MUFG and BofA Securities Inc.
|
| Co-managers: | Capital One Securities Inc., RBC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Coupon: | 4 1/8%
|
| Price: | Par
|
| Yield: | 4 1/8%
|
| Spread: | 380 bps
|
| Call protection: | Two years
|
| Trade date: | April 16
|
| Settlement date: | April 21
|
| Ratings: | Moody's: Ba2
|
| S&P: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 4¼% area
|
| Marketing: | Drive-by
|
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