By Paul A. Harris
Portland, Ore., Nov. 17 – PBF Holding Co., LLC and PBF Finance Corp. priced a $500 million issue of split-rated eight-year senior secured notes (B1/BBB-) at par to yield 7% on Tuesday, according to a syndicate source.
The yield printed at the tight end of the 7% to 7¼% yield talk. Initial guidance was 7¼%, according to a trader.
The quick-to-market deal was marketed by means of one-on-one meetings with investors that took place on Tuesday morning in New York, as well as on an investor conference call on Tuesday morning.
Joint global bookrunner UBS Investment Bank was lead left bookrunner. Deutsche Bank Securities Inc. is also a joint global bookrunner.
Barclays, Citigroup Global Markets Inc., Credit Agricole CIB and Credit Suisse Securities (USA) LLC were joint bookrunners.
The Parsippany, N.J.-based independent petroleum refiner plans to use the proceeds for general corporate purposes, including a portion of the purchase price for Exxon Mobil Corp.’s refinery in Torrance, Calif.
PBF supplies unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States.
| Issuers: | PBF Holding Co. LLC and PBF Finance Corp.
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2023
|
| Securities: | Senior secured notes
|
| Joint global bookrunners: | UBS Investment Bank (lead left), Deutsche Bank Securities Inc.
|
| Joint bookrunner: | Barclays, Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC
|
| Co-managers: | Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, Wells Fargo Securities LLC, Natixis Securities, ABN Amro, Natixis Securities
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 488 bps
|
| First call: | Nov. 15, 2018 at 105.25
|
| Equity clawback: | 35% at 107 until Nov. 15, 2018
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 24
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BBB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7% to 7¼%
|
| Marketing: | Quick to market
|
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