By Paul A. Harris
Portland, Ore., Feb. 8 – Consolidated Energy Finance SA priced an upsized $605 million issue of seven-year senior notes (B2/BB-/BB-) at par to yield 12% on Thursday, according to market sources.
The issue size increased from $580 million.
The yield printed at the wide end of the 11¾% to 12% yield talk. Initial guidance was in the high-11% area.
The deal also underwent covenant changes which primarily bear upon how the company may disburse cash and incur additional debt.
Joint bookrunners were Morgan Stanley & Co. LLC, Santander US Capital Markets LLC, Abu Dhabi Commercial Bank PJSC, SMBC Nikko Securities America, Inc. and Scotia Capital (USA) Inc.
The Mason City, Iowa-based company plans to use the proceeds plus a $745 million term loan B to refinance bridge facilities used in part to finance its acquisition of a majority stake in OMC, as well as to refinance its term loan B due 2025, and for general corporate purposes. The incremental proceeds resulting from the $25 million upsize of the deal will also be used for general corporate purposes.
Consolidated Energy acquires and develops companies focused on alternative waste management and energy production.
| Issuer: | Consolidated Energy Finance SA
|
| Amount: | $605 million, increased from $580 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 15, 2031
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, Santander US Capital Markets LLC, Abu Dhabi Commercial Bank PJSC, SMBC Nikko Securities America, Inc. and Scotia Capital (USA) Inc.
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Spread: | 797 bps
|
| First call: | Feb. 15, 2027 at 106
|
| Trade date: | Feb. 8
|
| Settlement date: | Feb. 13
|
| Ratings: | Moody’s: B2
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 11¾% to 12%
|
| Marketing: | Roadshow
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