By Paul A. Harris
Portland, Ore., Nov. 4 – PECF Intermediate Holding III Corp. priced a downsized $550 million issue of eight-year senior notes (Caa2/CCC) at par to yield 8% on Thursday, according to market sources.
The tranche was downsized from $750 million. That downsizing follows a previous decrease in the size of the notes offer to $750 million from $1.3 billion, which came earlier in the week when the company withdrew a proposed $550 million offering of senior secured notes and shifted the proceeds to its concurrent bank loan.
The new senior notes came in the middle of yield talk in the 8% area. Early guidance had been in the high 7% area to 8%.
BofA Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc. and Jefferies LLC were the joint bookrunners.
Proceeds will be used to fund the acquisition of United Site Services Co. by Platinum Equity, and to refinance debt.
The issuer is a Westborough, Mass.-based portable toilet rental company.
| Issuer: | PECF USS Intermediate Holding III Corp.
|
| Amount: | $550 million, downsized from $750 million after downsizing from $1.3 billion ($550 million secured notes tranche withdrawn)
|
| Maturity: | Nov. 15, 2029
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| Securities: | Senior notes
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| Bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc., Jefferies LLC
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 661 basis points
|
| First call: | Nov. 15, 2024 at 104
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| Trade date: | Nov. 4
|
| Settlement date: | Nov. 19
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| Ratings: | Moody's: Caa2
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| S&P: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% area
|
| Marketing: | Roadshow
|
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