By Paul A. Harris
Portland, Ore., June 5 – Jack Cooper priced a restructured $150 million issue of five-year senior PIK toggle notes (Caa2/CCC-) at 98 for a cash yield of 11.06% on Thursday, according to an informed source.
The notes pay a 10½% cash coupon which increases to 11¼% for PIK payments.
The coupons, yield and reoffer price blew out well wide of price talk levels that had the deal coming with a coupon of 9¾% to 10% at 99 to yield approximately 10% to 10¼%.
Wells Fargo Securities LLC was the left bookrunner. Barclays was the joint bookrunner.
In structural changes, call protection was increased to two years from one year. The first call premium remains unchanged at 102.
The equity clawback was also restructured, with the callback premium increased to 105 from 102. The 105 premium kicks in in 2015, and decreases to 103 in 2016.
The issuer will be JCH Parent, Inc.
The Kansas City, Mo.-based transport distribution services provider plans to use the proceeds to pay cash dividends, to make a contribution to Jack Cooper Holdings Corp. for the purpose of repaying bank debt, to make the first interest payment due on the notes and for other general corporate purposes.
| Issuer: | JCH Parent, Inc. (Jack Cooper Holdings Corp.)
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| Amount: | $150 million
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| Maturity: | March 15, 2019
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| Securities: | Senior PIK toggle notes
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| Left bookrunner: Wells Fargo Securities LLC
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| Joint bookrunner: | Barclays
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| Cash coupon: | 10½%
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| PIK coupon: | 11¼%
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| Price: | 98
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| Cash yield: | 11.06%
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| First call: | After two years at 102
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| Trade date: | June 5
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| Settlement date: | June 10
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| Ratings: | Moody’s: Caa2
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| Standard & Poor’s: CCC-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 9¾% to 10% coupon at 99 to yield approximately 10% to 10¼%
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