By Paul A. Harris
Portland, Ore., Sept. 22 – Forward Air Corp. priced a downsized $725 million issue of 9˝% eight-year senior secured notes (Ba3/BB-/BB) at 98 to yield 9.865% on Friday, according to a syndicate source.
The coupon came in the middle of coupon talk in the 9˝% area. The issue price came on top of price talk. The yield was in line with yield talk in the 9 7/8% area.
There were also covenant revisions which primarily bear upon how the company may disburse cash and incur additional debt.
Bookrunners were Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and PNC Capital Markets LLC.
The notes will be issued via GN Bondco, LLC, which is to be merged with and into Clue Opco LLC.
The $200 million downsize amount was shifted to a concurrent term loan, which increased to $1.125 billion from $925 million
The Greeneville, Tenn.-based provider of transportation services plans to use proceeds from the bonds and loan to support its acquisition of Omni Logistics LLC from Ridgemont Equity Partners and EVE Partners LLC, and to repay debt.
| Issuer: | GN Bondco, LLC, to be merged with and into Clue Opco LLC
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| Amount: | $725 million, decreased from $925 million
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| Issue: | Senior secured notes
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| Maturity: | Oct. 15, 2031
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| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and PNC Capital Markets LLC
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| Co-managers: | Capital One Securities Inc., Citizens Capital Markets Inc., Deutsche Bank Securities Inc. and TD Securities (USA) LLC
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| Coupon: | 9˝%
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| Price: | 98
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| Yield: | 9.865%
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| Spread: | 542 bps
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| First call: | Oct. 15, 2026 at 104.75
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| Trade date: | Sept. 22
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| Settlement date: | Oct. 2
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| Ratings: | Moody’s: Ba3
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| S&P: BB-
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| Fitch: BB
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| Distribution: | Rule 144A for life and Regulation S
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| Price talk: | 9˝% area at OID 98 to yield in the 9 7/8% area
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| Marketing: | Roadshow
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