By Cristal Cody
Tupelo, Miss., Sept. 12 – CDW LLC and CDW Finance Corp. priced an upsized $600 million of senior notes due April 1, 2028 (Ba2/BB-) on Thursday at par to yield 4¼%, according to a market source and an FWP filing with the Securities and Exchange Commission.
The bonds priced with a spread of 250 basis points over Treasuries.
Initial talk was in the 4 3/8% area.
The deal was upsized from $550 million.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co. LLC, MUFG and Wells Fargo Securities LLC were the bookrunners.
The issue will be guaranteed on a senior basis by parent company CDW Corp. and all of the direct and indirect domestic subsidiaries of CDW LLC that are guarantors under the company’s senior secured term loan facility.
Proceeds will be used to fund the redemption of $525 million of senior notes due 2023 at 102.5 and for general corporate purposes.
CDW is a Lincolnshire, Ill.-based provider of technology products and services.
| Issuers: | CDW LLC and CDW Finance Corp.
|
| Guarantors: | CDW Corp. and all direct and indirect domestic subsidiaries of CDW LLC that are guarantors under a senior secured term loan facility
|
| Amount: | $600 million
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| Description: | Senior notes
|
| Maturity: | April 1, 2028
|
| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co. LLC, MUFG and Wells Fargo Securities LLC
|
| Co-managers: | BofA Securities, Inc., Capital One Securities Inc., RBC Capital Markets LLC and U.S. Bancorp Investments
|
| Coupon: | 4¼%
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| Price: | Par
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| Yield: | 4¼%
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| Spread: | Treasuries plus 250 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps; on or after Oct. 1, 2022 at 102.125, Oct. 1, 2023 at 101.063 and Oct. 1, 2024 and thereafter at par
|
| Change-of-control put: | 101%
|
| Equity clawback: | Up to 40% of principal before Oct. 1 2022 at 104.25
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| Trade date: | Sept. 12
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| Settlement date: | Sept. 26
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| Ratings: | Moody’s: Ba2
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| S&P: BB-
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| Distribution: | SEC registered
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| Marketing: | Investor calls
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| Price talk: | 4 3/8% area
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