By Paul A. Harris
Portland, Ore., Dec. 9 – Carlson Wagonlit priced $1.01 billion equivalent of high-yield notes in three tranches on Friday, according to a market source.
The deal included $415 million of seven-year senior secured fixed-rate notes (B2/B), which priced at par to yield 6¾%, at the tight end of the 6¾% to 7% yield talk.
A €330 million tranche of 6.5-year senior secured floating-rate notes (B2/B) priced at par to yield Euribor plus 475 bps. The reoffer price came at the cheap end of the 99.75 to par price talk. The spread came at the tight end of the revised 475 bps to 500 bps spread talk; earlier official talk had the floating-rate notes coming with a 500 bps to 525 bps spread to Euribor at par.
The sole unsecured tranche came as a $250 million issue of eight-year senior notes (Caa1/CCC+), which price at par to yield 9½%, at the wide end of the 9¼% to 9½% yield talk.
There was slightly more demand for the secured notes than for the unsecured notes, sources said.
Both dollar-denominated tranches – one secured, the other unsecured – were trading at 102 bid, late Friday afternoon.
Bookrunner JPMorgan will bill and deliver for the dollar-denominated tranches.
Bookrunner BNP Paribas will bill and deliver for the euro-denominated tranche.
Lloyds, Morgan Stanley, RBC Capital Markets and U.S. Bancorp were the passive bookrunners.
Proceeds, together with issue equity, will be used to fund the redemption of $415 million of Carlson Wagonlit BV’s 6 7/8% senior secured notes due 2019 and €300 million 7½% senior secured notes due 2019 issued by Carlson Wagonlit BV, and $360 million Carlson Travel Holdings 7½%/8¼% senior PIK toggle notes due 2019, and fund the repayment of certain shareholder loans.
The issuing entity was Carlson Travel Inc.
The issuer is a Paris-based company that specializes in arranging business travel and meetings and events.
| Issuer: | Carlson Travel Inc.
|
| Amount: | $1.01 billion equivalent, decreased from $1.025 billion equivalent
|
| Bookrunners: | JPMorgan (bill and deliver for the dollar-denominated notes), BNP Paribas (bill and deliver for the euro-denominated notes)
|
| Passive bookrunners: | Lloyds, Morgan Stanley, RBC Capital Markets, U.S. Bancorp
|
| Trade date: | Dec. 9
|
| Settlement date: | Dec. 16
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Senior secured fixed-rate notes
|
| Amount: | $415 million
|
| Maturity: | Dec. 15, 2023
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 445 bps
|
| Call protection: | Three years
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Price talk: | 6¾% to 7%
|
|
|
| Senior secured floating-rate notes
|
| Amount: | €330 million
|
| Maturity: | June 15, 2023
|
| Coupon: | Euribor plus 475 bps
|
| Price: | Par
|
| Yield: | Euribor plus 475 bps
|
| Call protection: | One year
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Price talk: | Euribor plus 475 to 500 bps at 99.75 to par (revised from 500 to 525 bps at par)
|
|
|
| Senior unsecured notes
|
| Amount: | $250 million
|
| Maturity: | Dec. 15, 2024
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 717 bps
|
| Call protection: | Three years
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Price talk: | 9¼% to 9½%
|
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