By Paul A. Harris
Portland, Ore., Feb. 6 – Crash Champions LLC priced a downsized $600 million issue of five-year senior secured notes (B3/B-) at par to yield 8¾% on Tuesday, according to market sources.
The issue size decreased from $650 million, with the proceeds shifted to a concurrent bank loan.
The yield printed 12.5 basis points beneath the tight end of yield talk in the 9% area. Early guidance was in the low-to-mid 9% area.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were BMO Capital Markets Corp., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Truist Securities Inc.
The issue was well oversubscribed, a portfolio manager said, adding that the shift of proceeds to the bank loan was likely a reflection of an intense demand for the loan paper from the CLOs.
The bonds broke to par ½ bid, 101½ offered late Tuesday, a trader said.
Crash Champions’ concurrent five-year senior secured term loan B (B3/B-) upsized to $750 million from $650 million, reflecting the shift of proceeds from the bond deal plus a further $50 million increase that reflected the downsizing of equity components.
Proceeds from the bonds, loan and PIK preferred equity will be used to refinance existing Service King and Crash Champions debt.
Crash Champions is a collision repair platform based in Westmont, Ill.
| Issuer: | Champions Financing, Inc.
|
| Amount: | $600 million, decreased from $650 million
|
| Issue: | Senior secured notes
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| Maturity: | Feb. 15, 2029
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | BMO Capital Markets Corp., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Truist Securities Inc.
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Spread: | 472 bps
|
| First call: | Feb. 15, 2026 at 104.375
|
| Trade date: | Feb. 6
|
| Settlement date: | Feb. 23
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| Ratings: | Moody’s: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% area
|
| Marketing: | Roadshow
|
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