By Paul A. Harris
Portland, Ore., Oct. 13 – Newfold Digital Holdings Group, Inc. priced an upsized $515 million issue of five-year senior secured notes (B2/B/BB-) at par to yield 11¾% on Friday, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 11¾% to 12% yield talk and in line with initial guidance in the high-11% to 12% area.
JPMorgan is the lead.
The deal priced on an accelerated timeline. When it was announced earlier in the week it was scheduled to remain in the market into the week ahead.
The bonds were a point higher on the break, sources said.
The deal played to $770 million of demand, a sellside source said, adding that allocations were heard to be “OK.”
Of the proceeds, $400 million will go to fund a sponsor dividend, with the remainder, including the incremental proceeds resulting from the $15 million upsize of the deal, to repay a portion of the outstanding Endurance Acquisition Merger Sub 6% senior notes due 2029.
Newfold Digital is a web technology company formed by the merger of Endurance Web Presence and web.com in 2021.
The sponsors are Siris Capital Group, LLC and Clearlake Capital Group, LP.
| Issuer: | Newfold Digital Holdings Group, Inc.
|
| Amount: | $515 million, increased $500 million
|
| Issue: | Senior secured notes
|
| Maturity: | Oct. 15, 2028
|
| Lead: | JPMorgan
|
| Coupon: | 11¾%
|
| Price: | Par
|
| Yield: | 11¾%
|
| Spread: | 710 bps
|
| First call: | Oct. 15, 2025 at 105.875
|
| Special call: | 10% of notes annually at 103 during non-call period
|
| Trade date: | Oct. 13
|
| Settlement date: | Oct. 18
|
| Ratings: | Moody’s: B2
|
| S&P: B
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 11¾% to 12%
|
| Marketing: | Roadshow
|
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