By Paul A. Harris
Portland, Ore., June 9 – Central Parent Inc. and Central Parent Merger Sub Inc. priced $750 million of issue of 7¼% seven-year senior secured first-lien notes (B1/B+) supporting the buyout of CDK Global Inc. by Brookfield Business Partners, according to market sources.
The deal priced Thursday at par to yield 7¼%, in the middle of yield talk in the 7¼% area. Initial guidance was in the mid-7% area.
The deal underwent covenant changes which primarily bear upon how the company may disburse cash and incur additional debt.
The deal was trading slightly below new issue price at the Thursday close, 99¼ bid, 99¾ offered, a sellside source said.
Credit Suisse Securities (USA) LLC was the left bookrunner. Joint bookrunners were Goldman Sachs & Co. LLC, BMO Capital Markets Corp., Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., BNP Paribas Securities Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc., Credit Agricole CIB, MUFG and SG Americas Securities LLC.
Proceeds plus $4 billion of new credit facilities and equity contributions from funds affiliated with Brookfield will be used to pay the cash consideration for Brookfield's acquisition of the Hoffman Estates, Ill.-based automotive technology company, as well as to pay off CDK Global's existing credit facility, to pay the cash consideration for debt tender offers and for general corporate purposes.
The acquisition is expected to close in the third quarter of 2022.
| Issuers: | Central Parent Inc. and Central Merger Sub Inc.
|
| Amount: | $750 million
|
| Issue: | Senior secured first-lien notes
|
| Maturity: | June 15, 2029
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Goldman Sachs & Co. LLC, BMO Capital Markets Corp., Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., BNP Paribas Securities Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc., Credit Agricole CIB, MUFG and SG Americas Securities LLC
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 416 bps
|
| First call: | June 15, 2025 at 103.625
|
| Trade date: | June 9
|
| Settlement date: | June 16
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7¼% area
|
| Marketing: | Roadshow
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
