By Paul A. Harris
Portland, Ore., April 18 – Perenti Finance Pty Ltd. priced a $350 million issue of five-year senior notes (BB/BB+) at par to yield 7½% on Thursday, according to market sources.
The yield printed on top of yield talk.
Joint bookrunners were HSBC and Standard Chartered.
The notes are guaranteed by Perenti Ltd.
The deal, which ran a global roadshow including stops in Hong Kong and Singapore, was a blowout, according to a bond trader in New York, who added that book size was heard to be in excess of $2 billion for the $350 million offering.
The Australia-based mining group has a robust following among U.S. high-yield bond investors, the trader remarked.
Perenti plans to use the proceeds to partially redeem $230 million of its $433 million of outstanding 6½% senior notes due 2025 and to partially repay amounts drawn under its syndicated facility.
| Issuer: | Perenti Finance Pty Ltd.
|
| Guarantor: | Perenti Ltd.
|
| Amount: | $350 million
|
| Issue: | Senior notes
|
| Maturity: | April 26, 2029
|
| Joint bookrunners: | HSBC (bill and deliver) and Standard Chartered
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Call: | Make-whole call at Treasuries plus 50 bps prior to April 26, 2026, when notes are callable at 103.75, on April 26, 2027 at 101.875, and in April 26, 2028 at par
|
| Trade date: | April 18
|
| Settlement date: | April 26
|
| Ratings: | S&P: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7½%
|
| Cusip: | 71367VAB5 and Q7390AAB8
|
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