By Abigail W. Adams
Portland, Me., March 26 – Phinia Inc. priced an upsized $525 million of five-year senior secured notes (Ba1/BB+) on Tuesday at par to yield 6¾%, according to a market source.
Pricing came tighter than talk for a yield in the 7% area. Early guidance was in the low 7% area.
The initial size of the offering was $425 million.
The notes are non-callable for two years.
BofA Securities Inc. is lead left bookrunner for the Rule 144A and Regulation S offering. J.P. Morgan Securities LLC, Wells Fargo Securities LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are also bookrunners.
Proceeds, together with cash on hand, will be used to repay the outstanding borrowings under the term loan B facility.
Phinia is an Auburn Hills, Mich.-based fuel systems and hydrogen technology solutions company.
| Issuer: | Phinia Inc.
|
| Amount: | $525 million
|
| Issue: | Senior secured notes
|
| Maturity: | April 15, 2029
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 248 bps
|
| First call: | April 15, 2026
|
| Trade date: | March 26
|
| Settlement date: | April 4
|
| Ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Distribution: | Rule 144A and Regulation S offering
|
| Price talk: | 7% area
|
| Marketing: | Roadshow
|
|
|
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