By Paul A. Harris
St. Louis, Aug. 12 - THL Buildco Inc., which is acquiring Nortek Inc., sold $625 million of 10-year senior subordinated notes (B3/B-) Thursday at par to yield 8½%, according to a syndicate source.
Price talk was 8½% to 8¾%.
UBS Investment Bank and Credit Suisse First Boston are joint bookrunners for the Rule 144A/Regulation S offering. Banc of America Securities and Bear Stearns & Co. are co-managers.
The notes will come with five years of call protection.
Proceeds will be used to help fund the $1.75 billion acquisition of Nortek by THL Buildco (Thomas H. Lee Partners) from Kelso & Co. LP.
Nortek is a Providence, R.I., manufacturer and distributor of residential and commercial building, remodeling and indoor control products.
| Issuer: | THL Buildco Inc., to be merged with and into Nortek Inc.
|
| Amount: | $625 million
|
| Maturity: | Sept. 1, 2014
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | UBS Investment Bank, Credit Suisse First Boston
|
| Co-managers: | Banc of America Securities, Bear Stearns & Co.
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 425 basis points
|
| Call features: | Callable after Sept. 1, 2009 at 104.25, 102.833, 101.417, par on or after Sept. 1, 2012
|
| Equity clawback: | Until Sept. 1, 2007 for 35% at 108.5
|
| Pricing date: | Aug. 12
|
| Settlement date: | Aug. 27
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 8½%-8¾%
|
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