By Paul A. Harris
Portland, Ore., Jan. 7 – ZipRecruiter, Inc. made its debut in the high-yield market pricing an upsized $550 million issue of eight-year senior notes (B2/BB-/BB-) at par to yield 5% on Friday, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 5% to 5¼% yield talk. Initial guidance was in the low 5% area.
The order book was heard to be six-times oversubscribed at the close of books, according to a trader, who called that level of demand into question, but added that there were smaller accounts heard to have gotten zero allocations.
The bonds were trading at par 7/8 bid, 101 3/8 offered late Friday afternoon, the trader said.
J.P. Morgan Securities LLC led a syndicate of bookrunners that also included Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and KeyBanc Capital Markets Inc.
The Santa Monica, Calif.-based online employment services provider plans to use the proceeds for general corporate purposes, which may include capital expenditures, investments and working capital. The additional proceeds resulting from the $50 million upsize of the deal will be used for general corporate purposes.
| Issuer: | ZipRecruiter, Inc.
|
| Amount: | $550 million
|
| Issue: | Senior notes
|
| Maturity: | Jan. 15, 2030
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and KeyBanc Capital Markets Inc.
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 329 bps
|
| First call: | Jan. 15, 2024 at 102.5
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 12
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5% to 5¼%
|
| Marketing: | Roadshow
|
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