PowerTeam sets price talk in $587 million notes offering, brings covenant changes; pricing Monday

By Paul A. Harris

Portland, Ore., May 11 – PowerTeam Services, LLC set price talk for its $587 million offering of senior secured notes due December 2025 (B3/B-) with a coupon in the 9% area, discounted to around 96, to yield in the 10% area, according to a syndicate source.

Books close at 2:30 p.m. ET on Monday, and the Rule 144A and Regulation S deal is set to price thereafter.

In addition to price talk came covenant changes.

The issuer relinquished its option to redeem up to $75 million of the notes at 103 with proceeds of loans related to the Coronavirus Aid, Relief and Economic Security Act (CARES).

There were also other covenant changes.

Credit Suisse Securities (USA) LLC is the left lead bookrunner. BNP Paribas Securities Corp., UBS Securities LLC, BMO Capital Markets Corp., MUFG, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and BofA Securities Inc. are the joint bookrunners.

The notes remain non-callable until February 2023, at which point they will become callable at par plus 50% of the coupon.

The Plymouth, Mich.-based provider of services to electric and gas utilities plans to use the proceeds to repay bridge notes that were used in conjunction with sponsor equity to fund the purchase of Mverge.

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