By Paul A. Harris
Portland, Ore., Aug. 9 – An upsized dealer offering of $405 million of Veritas US Inc. and Veritas Bermuda Ltd. senior secured notes due Feb. 1, 2023 (B1/B+) priced at 93.5 to yield 8.841% on Tuesday, according to an informed source.
The offering was upsized from $387 million.
The reoffer price came rich to price talk in the 93 area.
Initial guidance was 92 to 93, an investor said.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Investment Bank, Jefferies LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. and Mizuho Securities were the sellers.
More notes to price Wednesday
Meanwhile the dealers plan to price an upsized €240 million (from €230 million) amount of the Veritas senior secured notes due Feb. 1, 2023 on Wednesday, the syndicate source said.
The euro-denominated notes are also talked at 7½%, in the 93 area.
Books close at 5 a.m. ET on Wednesday, and the notes are set to price thereafter.
Hung bridge loan
Dealers converted a Veritas hung bridge loan into the senior secured notes due Feb. 1, 2023 in the wake of the postponement of debt financing backing the buyout of the company by the Carlyle Group from Symantec Corp. in November 2015.
Veritas is a Mountain View, Calif.-based provider of storage and server management software solutions.
| Issuers: | Veritas US Inc. & Veritas Bermuda Ltd.
|
| Face amount: | $405 million
|
| Proceeds: | $378,675,000
|
| Maturity: | Feb. 1, 2023
|
| Securities: | Senior secured notes
|
| Sellers: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Investment Bank, Jefferies LLC, Citigroup Global Markets Inc., Goldman Sachs & Co., Mizuho Securities
|
| Coupon: | 7½%
|
| Price: | 93.5
|
| Yield to maturity: | 8.841%
|
| Spread to maturity: | 751 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2019, then callable at 103.75
|
| Equity clawback: | 40% at 107.5 until to Feb. 1, 2019
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 7½% at 93
|
| Marketing: | Investor call
|
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