By Paul A. Harris
St. Louis, July 27 - Phibro Animal Health Corp. priced a restructured $240 million two-part notes transaction on Thursday, according to a market source.
The company priced a downsized $160 million tranche of seven-year senior notes (B3/B-) at par to yield 10%. The yield came on top of price talk that had been revised from the 10¾% area. The tranche was downsized from $240 million.
Meanwhile the company shifted the $80 million from the senior notes into a new tranche of eight-year senior subordinated notes, which priced at par to yield 13%, wide versus the 12½% area price talk.
UBS Investment Bank had the books for the Rule 144A notes. Morgan Joseph was joint bookrunner.
Proceeds will be used to refinance debt, including the company's senior secured notes due 2007, the senior subordinated notes due 2008 and the senior secured notes due 2010.
The issuer is a Ridgefield Park, N.J., animal health and nutrition products company.
| Issuer: | Phibro Animal Health Corp.
|
| Amount: | $240 million
|
| Bookrunner: | UBS Investment Bank
|
| Joint lead manager: | Morgan Joseph
|
| Trade date: | July 27
|
| Settlement date: | Aug. 1
|
| Distribution: | Rule 144A
|
|
|
| Seven-year notes
|
| Amount: | $160 million (decreased from $240 million)
|
| Maturity: | Aug. 1, 2013
|
| Security description: | Senior notes
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Spread: | 501 bps
|
| Call features: | Callable on or after Aug. 1, 2010 at 105, 102.5, par on and after Aug. 1, 2012
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 10% area (revised from 10¾% area)
|
|
|
| Eight-year notes
|
| Amount: | $80 million
|
| Maturity: | Aug. 1, 2014
|
| Security description: | Senior subordinated notes
|
| Coupon: | 13%
|
| Price: | Par
|
| Yield: | 13%
|
| Spread: | 799 bps
|
| Call features: | Callable on or after Aug. 1, 2010 at 106.5, 103.25, par on and after Aug. 1, 2012
|
| Price talk: | 12½% area
|
|
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