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NXP $500M high-yield bonds price at talk, at par to yield 5.75%; terms

NXP this afternoon completed a drive-by offering of senior notes via bookrunners Morgan Stanley, Barclays, Credit Suisse, and KKR, according to sources. Terms on the B/B3 transaction were finalized at the middle of talk and at the target size, but an early read from the gray market points to follow-on demand, for potentially a half-a-point gain on the break, sources add. Take note that the equity clawback option is higher than typical, for up to 40% of the issue. Proceeds from the borrower’s first bond deal in 2.5 years will be used to repay the $493.75 million of the semiconductor concern’s second 2017 term loan, the TLA-2 due 2017 issued in November 2011 at 96. The loan was structured as an add-on to NXP’s existing covenant-lite term loan maturing in March 2017. Terms:

Issuer NXP Funding/NXP B.V.
Ratings B/B3
Amount $500 million
Issue senior notes (144A for life)
Coupon 5.75%
Price 100
Yield 5.75%
Spread T+417
FRN eq. L+404
Maturity Feb. 15, 2021
Call nc4
Trade Jan. 31, 2013
Settle Feb. 14, 2013 (t+10)
Jt. Books MS/Barc/CS/KKR
Px talk 5.75% area
Notes w/ three-year equity clawback option for up to 40% of issue @105.75
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Global A&T Electronics $625M high-yield bonds price at par to yield 10%; terms

Global A&T Electronics today completed an offering of secured notes via joint bookrunners Bank of America, Credit Suisse, J.P. Morgan, and UBS, according to sources. Final terms for the deal came at the middle of talk and at the $625 million target size. The Singapore-based provider of semiconductor test and assembly services will use funds raised from the bond deal, along with cash, to repay all debt outstanding under its first-lien credit facilities. That includes $589.6 million of term loans and $36.5 million of revolver borrowings, Moody’s notes. The issuer is also putting in place a new $125 million revolving credit facility that will be undrawn at closing. Terms:

 

Issuer Global A&T Electronics
Ratings B/B1
Amount $625 million
Issue secured notes (144A)
Coupon 10.00%
Price 100
Yield 10.00%
Spread T+882
FRN eq. L+868
Maturity Feb. 1, 2019
Call nc3
Trade Jan. 31, 2013
Settle Feb. 7, 2013 (T+5)
Joint Bookrunners BAML/CS/JPM/UBS
Co-leads
Co’s.
Px talk 10% area
Notes w/ three-year equity clawback for 35% @ 110; carries T+50 make-whole call.
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Unifrax high-yield bonds price tight to talk, at par, to yield 7.5%; terms

Unifrax today completed an offering of senior notes via bookrunners Goldman Sachs, Wells Fargo, and KeyBanc, according to sources. Terms were inked at the tight end of 7.5-7.75% talk, which itself was exceptionally inside the pre-marketing chatter of around 8%. Size of the deal was revised to $205 million, from $250 million at launch, while the concurrent loan was upsized by $65 million. Proceeds from the coordinated bond and loan financing support an acquisition and repayment of institutional loans, with the incremental proceeds from the loan upsizing aimed at some RC repayment and the addition of cash on the balance sheet, the sources add. Note that heavy interest in the bonds allowed the underwriter to cull the first call premium to regular-way, at par plus 50% coupon, versus the initial plan for par plus 75% coupon. Unifrax, based in Niagara Falls, N.Y., makes high-temperature insulation products that are used in a variety of industrial applications. Terms:

 

Issuer Unifrax
Ratings B-/Caa1
Amount $205 million
Issue senior notes (144A-life)
Coupon 7.50%
Price 100
Yield 7.50%
Spread T+640
FRN eq. L+623
Maturity Feb. 15, 2019
Call nc2
Trade Jan. 31, 2013
Settle n/a
Joint Bookrunners GS/WF/Key
Co-leads
Co’s.
Px talk 7.5-7.75%
Notes 1st call price revised to par +50% of coupon, from 75%; downsized by $45 million for upsize to TL.
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Europe: ONO high-yield bonds price at 98.69 to yield 8.75%; terms

ONO today placed a €260 million offering of seven-year (non-call three) secured notes. Deutsche Bank (B&D), BBVA, and ING are global coordinators, alongside joint bookrunners Bankia, BNP Paribas, Bank of America Merrill Lynch, Credit Agricole CIB, J.P. Morgan, Santander, and Societe Generale CIB. The bonds were upsized by €10 million, and priced at 98.69 to yield 8.75%, the wide end of 8.5-8.75% guidance. Proceeds will be used to prepay the borrower’s TLA. The deal was opportunistic for ONO, giving the company flexibility in financing and helping it to reduce the average cost of debt. By pre-paying down its amortisation – €39 million for 2013, €77 million for 2014, and €128 million for 2015 – the company also gets rid of all its near-term amortisation payments until 2016. Terms:

 

Issuer Nara Cable Funding II
Ratings B+/B1/BB-
Amount €260 million
Issue Secured notes
Coupon 8.5%
Price 98.69
Yield 8.75%
Spread B+764
Fixed eq. E+723
Maturity Mar. 1, 2020
Call nc3
Trade Jan. 31, 2013
Settle Feb. 7, 2013 (T+5)
Global coord. DB (B&D), BBVA, ING
Jt. Books Bankia, BNP, BAML, CA, JPM, Santander, SG
Price talk 8.5-8.75%
Notes Upsized by €10M. Call schedule: March 1, 2016 @108.5, March 1, 2017 @104.25, March 1, 2018 @102.125, March 1, 2019 @100
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Europe: Nord Anglia releases guidance for $150M of PIK-toggle notes

Nord Anglia Education has guided its $150 million offering of five-year (non-call two) PIK-toggle notes with an 8.5% coupon and an issue price of 98, offering a cash-pay yield of 9.01%. Books are scheduled to close at 5:00 p.m. EST today in the U.S., 11:00 a.m. GMT tomorrow in London, and 5:00 p.m. HKT tomorrow in Asia. Pricing is slated for Friday morning EST.

Goldman Sachs is sole bookrunner.

As reported, proceeds will be used to partially redeem the issuer’s preferred shares.

The 144A/RegS notes are not for sale into Canada.

According to the preliminary offering memorandum, pro forma total debt to EBITDA for the 12 months ended Nov. 30, 2012 is 6.1x, and net debt to EBITDA for the 12 months ended Nov. 30, 2012 is 4.9x.

This is the second PIK-toggle deal to be sold this year. The first came from Orion Engineered Carbonsearlier this week, which sold an upsized $425 million 2019 deal yielding 9.46%. That transaction was also marketed on both sides of the Atlantic, and proceeds from both deals will fund dividends.

Nord Anglia Education is a global operator of premium schools in China, Thailand, Switzerland, Central Europe, and the Middle East through its Premium Schools. – Luke Millar

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Europe: Securitas Direct €100 million high yield bond deal prices

Securitas Direct today placed a €100 million offering of tack-on notes to its Series A senior-secured FRNs due 2018. Global coordinators are Morgan Stanley (B&D) and Goldman Sachs, with Nomura as joint books. The bonds priced at 101, in line with guidance. The tranche is a tack-on to the borrower’s E+650 senior-secured FRNs, and carries the same September 2018 maturity and coupon as the existing tranche. The notes are first callable on Sept. 1, 2014 at 102. Proceeds will be used to refinance drawings under the borrower’s RCF. After this transaction – which will pay down €97 million of borrowings under the RCF – there will be roughly €259.7 million available under the RCF, according to the preliminary offering memorandum. Terms: 

Issuer Verisure Holding AB (Securitas Direct)
Ratings B/B2
Amount €100 million
Issue Series A FRN add-on
Coupon E+650
Price 101
Yield n/a
Spread n/a
Fixed eq. n/a
Maturity Sept. 1, 2018
Call nc1.5
Trade Jan. 31, 2013
Settle Feb. 7, 2013 (T+3)
Global coord. MS (B&D), GS
Jt. Books Nomura
Price talk 101%
Notes Call schedule: Sept. 1, 2014 @102, Sept. 1, 2015 @101, Sept. 1, 2016 @100
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KKR’s First Data prices $785M bond deal (repay LBO PIK notes) to yield 11.25%

First Data today completed an offering of senior notes via joint physical bookrunners Citi and Deutsche Bank and joint bookrunners HSBC, Wells Fargo, Bank of America, and Credit Suisse, according to sources. Terms of the drive-by deal were inked at the midpoint of talk and at the target size of $785 million. The data-processing company will use proceeds from the deal to refinance vintage 2007 buyout related 10.55% pay-in-kind notes due 2015. Total consideration under a tender offer launched today is $1,029.02 per bond, inclusive of an early tender premium. Today’s deal is part of a broader refinancing effort with a term loan refinancing also rolled out this morning. Terms:

Issuer First Data
Ratings B-/Caa1
Amount $785 million
Issue senior notes (144A)
Coupon 11.25%
Price 100
Yield 11.25%
Spread T+987
FRN eq. L+972
Maturity Jan. 15, 2021
Call nc3; 1st call @ par +75% of coupon
Trade Jan. 30, 2013
Settle Feb. 13, 2013 (T+10)
Joint Phys. Books Citi/DB
Joint Bookrunners HSBC/WF/BAML/CS
Co’s. KKR,Sun,GS
Px talk 11.25% area
Notes w/ three-year equity clawback for 35% @ 111.25; carries T+50 make-whole call; w/ change-of-control put @ 101.
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3 months after last deal Lennar prices bullet notes at guidance; terms

Lennar is back in market after just over three months with a two-part offering of senior notes placed today via Citi, Bank of America, BMO, Deutsche Bank, J.P. Morgan, and UBS, according to sources. Terms on each tranche were inked at the middle of guidance, though the package was downsized by $50 million, to a combined $450 million. The homebuilder said that it plans to use proceeds for working capital and general corporate purposes, which may include the repayment of outstanding senior notes, according to a company statement. Note that for the add-on to the $350 million October issuance, ratings were B+/B1 at offer, but the profile is now BB-/B1. That is due to the S&P upgrade last week reflecting an expectation that “higher revenues and improved profitability over next 12-18 months will materially improve EBITDA-based credit metrics.” Terms:

Issuer Lennar
Ratings BB-/B1
Amount $175 million
Issue add-on senior notes (144A)
Coupon 4.75%
Price 98.07
Yield 5%
Spread T+300
FRN eq. L+293
Maturity Nov. 15, 2022
Call par call 3 months prior to maturity
Trade Jan. 30, 2013
Settle Feb 4, 2013 (t+3)
Jt. Books CITI/BAML/BMO/DB/JPM/UBS
Px talk 5% area
Notes total now $525 million; original $350 million priced Oct. 18, 2012 @par.
Issuer Lennar
Ratings BB-/B1
Amount $275 million
Issue senior notes (144A)
Coupon 4.125%
Price 99.99
Yield 4.125%
Spread T+324
FRN eq. L+310
Maturity Dec. 1, 2018
Call par call 3 months prior to maturity
Trade Jan. 30, 2013
Settle Feb 4, 2013 (t+3)
Jt. Books CITI/BAML/BMO/DB/JPM/UBS
Px talk 4.125% area
Notes net two-part offering downsized by $50 million.
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Antero Resources add-on bonds price at 103 to yield 5.4%; terms

Unconventional natural-gas resources firm Antero Resources this afternoon completed an add-on offering of senior notes via joint bookrunners J.P. Morgan, Wells Fargo, Barclays, Citi, and Mitsubishi, according to sources. Terms on the B+/B2 transaction were arranged at the wide end of talk, though with a $75 million upsizing, to $225 million, putting the total outstanding in the fungible series to $425 million. Recall that the structure as initially arranged in November includes a shorter-than-normal call for the tenor, at non-call-three, countered with a first call price that is at par plus 75% of the coupon rather than the standard 50%. Also, the issue includes a change-of-control call at 110% of par until Jan. 1, 2014. Antero is back in market in an effort to pay down RC borrowings, according to a company statement. Terms:

Issuer Antero Resources
Ratings B+/B2
Amount $225 million
Issue add-on senior notes (144A)
Coupon 6%
Price 103
Yield 5.39%
Spread T+381
FRN eq. L+367
Maturity Dec. 1, 2020
Call nc3; 1st call @ par +75% of coupon
Trade Jan. 30, 2013
Settle Feb. 4, 2013 (T+3)
Books JPM/WFS/Barc/CITI/MUSA
Px talk 103-103.5
Notes w/ three-year equity clawback for 35% @ 106; w/ change-of-control call @ 110 until 1/1/14; w/ change-of-control put @ 101; upsized by $75 million; total now $525 million; original $300 million priced Nov. 14, 2012 @ par.
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H&E Equipment add-on high-yield bonds price at 108.5 to yield 5.55%; terms

H&E Equipment Services returned to the high-yield market after five months this afternoon tacking on another $100 million to its 7% notes due 2022 via sole bookrunner Deutsche Bank, according to sources. The B+/B3 tap was inked tight to guidance, at 108.5, versus price talk at 108-108.5, bringing the total outstanding in the fungible series to $630 million. Proceeds from the deal will be used to repay borrowings under the company’s ABL after netting an amendment to allow for the issuance of the new notes, an SEC filing shows. Terms:

Issuer H&E Equipment Services
Ratings B+/B3
Amount $100 million
Issue add-on senior notes (144A)
Coupon 7%
Price 108.5
Yield 5.55%
Spread T+353
FRN eq. L+341
Maturity Sept. 1, 2022
Call nc4.5
Trade Jan. 30, 2013
Settle Feb. 4, 2013 (t+3)
Jt. Books DB
Px talk 108-108.5
Notes total now $630 million; original $530 million priced in August 2012 @ par.