Published on 3/22/2024 in the Prospect News High Yield Daily.
New Issue: Panther Escrow/TIH prices upsized $3 billion 7 1/8% secured notes due 2031 at par
By Paul A. Harris
Portland, Ore., March 22 – Panther Escrow Issuer, LLC and Panther Co-Issuer, Inc. priced an upsized $3 billion issue of seven-year senior secured notes (B2/B/B+) at par to yield 7 1/8% on Friday, according to market sources.
The issue size increased from $2.75 billion.
The yield printed in the middle of the 7% to 7¼% yield talk. Initial talk was in the 7¼% area.
Joint bookrunners were Morgan Stanley & Co. LLC (bill and deliver), BofA Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Truist Securities Inc., Stone Point Capital Markets, Barclays, RBC Capital Markets LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, KKR Capital Markets LLC, BNP Paribas Securities Corp., Mizuho Securities USA Inc., TD Securities (USA) LLC, Apollo Global Securities LLC, Santander US Capital Markets LLC, Jefferies LLC, UBS Securities LLC, BMO Capital Markets Corp., Capital One Securities Inc., Citizens Capital Markets Inc., Natixis Securities Americas LLC and Stifel Nicolaus & Co. Inc.
The deal came to market in order to finance the buyout of TIH, LLC (formerly known as Truist Insurance Holdings) by Stone Point Capital and Clayton, Dubilier & Rice.
The buyout, announced in February, is an all-cash transaction that values TIH at an implied enterprise value of $15.5 billion.
TIH is a financial services company that maintains headquarters in Charlotte, N.C., Greenwich, Conn., and New York.
| Issuers: | Panther Escrow Issuer, LLC and Panther Co-Issuer, Inc.
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| Amount: | $3 billion, increased from $2.75 billion
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| Issue: | Senior secured notes
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| Maturity: | June 1, 2031
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| Joint bookrunners: | Morgan Stanley & Co. LLC (bill and deliver), BofA Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Truist Securities Inc., Stone Point Capital Markets, Barclays, RBC Capital Markets LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, KKR Capital Markets LLC, BNP Paribas Securities Corp., Mizuho Securities USA Inc., TD Securities (USA) LLC, Apollo Global Securities LLC, Santander US Capital Markets LLC, Jefferies LLC, UBS Securities LLC, BMO Capital Markets Corp., Capital One Securities Inc., Citizens Capital Markets Inc., Natixis Securities Americas LLC and Stifel Nicolaus & Co. Inc.
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| Coupon: | 7 1/8%
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| Price: | Par
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| Yield: | 7 1/8%
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| Spread: | 293 bps
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| First call: | June 1, 2027 at 103.563
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| Trade date: | March 22
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| Settlement date: | April 8
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| Ratings: | Moody’s: B2
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| S&P: B
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| Fitch: B+
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| Distribution: | Rule 144A for life and Regulation S
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| Price talk: | 7% to 7¼%
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| Marketing: | Roadshow
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