By Paul A. Harris
Portland, Ore., Feb. 10 - Provident Funding Associates LP priced a $200 million issue of eight-year senior notes (B2/B/) at par to yield 10 1/8% on Thursday, according to market sources.
The yield printed in the middle of the 10% to 10¼% price talk.
J.P. Morgan Securities LLC ran the books for the Rule 144A notes.
Proceeds will be used to retain mortgage servicing rights on newly originated loans, to acquire mortgage servicing rights from third parties and for general corporate purposes.
The issuer is a Burlingame, Calif.-based private, independent mortgage company that originates and services residential mortgage loans.
| Issuer: | Provident Funding Associates LP and PFG Finance Corp.
|
| Amount: | $200 million
|
| Maturity: | Feb. 15, 2019
|
| Securities: | Senior notes
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Co-managers: | Jefferies & Co., UBS Investment Bank
|
| Coupon: | 10 1/8%
|
| Price: | Par
|
| Yield: | 10 1/8%
|
| Spread: | 683 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2015, then callable at a premium
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A for life
|
| Price talk: | 10% to 10¼%
|
| Marketing: | Roadshow
|
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