By Paul A. Harris
Portland, Ore., May 2 – Italy’s Multiversity SpA priced €1.1 billion of Pachelbel Bidco SpA seven-year senior secured notes (B2/B) in two tranches on Thursday, according to market sources.
A €500 million tranche of fixed-rate notes priced at par to yield 7 1/8%, tight to price talk in the 7¼% area. Initial guidance was 7¼% to 7½%.
A €600 million tranche of floating-rate notes priced with a 425 basis points spread to three-month Euribor at par, tight to spread talk in the 437.5 bps area. Initial guidance was 450 bps to 475 bps.
Final tranche sizes saw €50 million shifted to the fixed-rate tranche from the floating-rate tranche.
The notes also underwent covenant changes, which primarily bear upon how the company may disburse cash and incur additional debt.
Morgan Stanley and Goldman Sachs were global coordinators and were bookrunners along with BofA Securities, Deutsche Bank, Credit Agricole CIB, CVC Capital Partners, UniCredit and BNP Paribas.
Proceeds will be used to fund the acquisition by Pachelbel of Multiversity, to fund cash on the balance sheet and to pay fees and expenses.
Rome-based Multiversity operates an online university.
| Issuer: | Pachelbel Bidco SpA
|
| Amount: | €1.1 billion
|
| Issue: | Senior secured notes
|
| Tenor: | Seven years
|
| Global coordinators: | Morgan Stanley and Goldman Sachs
|
| Bookrunners: | Morgan Stanley, Goldman Sachs, BofA Securities, Deutsche Bank, Credit Agricole CIB, CVC Capital Partners, UniCredit and BNP Paribas
|
| Trade date: | May 2
|
| Settlement date: | May 17
|
| Ratings: | Moody’s: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Fixed-rate notes
|
| Amount: | €500 million, decreased from €550 million
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Call protection: | Three years
|
| Price talk: | 7¼% area
|
|
|
| Floating-rate notes
|
| Amount: | €600 million, increased from €550 million
|
| Coupon: | Euribor plus 425 bps
|
| Floor: | 0%
|
| Price: | Par
|
| Yield: | Euribor plus 425 bps
|
| Call protection: | One year
|
| Price talk: | Euribor plus 425 bps at par
|
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