By Paul A. Harris
Portland, Ore., Jan. 30 – UKG Inc. priced a $2.5 billion issue of seven-year senior secured notes (B2/B-/BB) at par to yield 6 7/8% on Tuesday, according to market sources.
The yield printed at the tight end of yield talk in the 7% area. Early guidance was in the low-7% area.
J.P. Morgan Securities LLC was the lead.
The deal was heard to be playing to $6.5 billion of demand on Tuesday morning, a trader said.
Proceeds plus a $4.89 billion term loan will be used to refinance the company’s first-lien term loans, to pay down a revolver draw and to fund cash to the balance sheet.
The issuer is a provider of human capital management solutions and is based in Weston, Fla., and Lowell, Mass.
| Issuer: | UKG Inc.
|
| Amount: | $2.5 billion
|
| Issue: | Senior secured notes
|
| Maturity: | Feb. 1, 2031
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 282 bps
|
| First call: | Feb. 1, 2027 at 103.438
|
| Trade date: | Jan. 30
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody’s: B2
|
| S&P: B-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7% area
|
| Marketing: | Roadshow
|
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