Published on 5/8/2024 in the Prospect News High Yield Daily.
New Issue: Allied Universal prices $500 million tap of 7 7/8% notes due 2031 at 99.75
By Paul A. Harris
Portland, Ore., May 8 – Allied Universal Holdco LLC and Allied Universal Finance Corp. priced a $500 million add-on to their 7 7/8% senior secured notes due Feb. 15, 2031 (B3/B) at 99.75 on Wednesday, according to a syndicate source.
The issue price came in the middle of the 99.5 to 100 price talk.
Joint bookrunners were Morgan Stanley & Co. LLC, UBS Securities LLC, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., MUFG Securities Americas Inc., SG Americas Securities LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Truist Securities Inc., BMO Capital Markets Corp., Santander US Capital Markets LLC, First Citizens and KeyBanc Capital Markets Inc.
The Santa Ana, Calif.-based provider of security services plans to use the proceeds plus cash on hand to repurchase a portion of outstanding secured notes due 2026.
| Issuers: | Allied Universal Holdco LLC and Allied Universal Finance Corp.
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| Amount: | $500 million
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| Issue: | Senior secured notes add-on
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| Maturity: | Feb. 15, 2031
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| Joint bookrunners: | Morgan Stanley & Co. LLC, UBS Securities LLC, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., MUFG Securities Americas Inc., SG Americas Securities LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, Truist Securities Inc., BMO Capital Markets Corp., Santander US Capital Markets LLC, First Citizens and KeyBanc Capital Markets Inc.
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| Coupon: | 7 7/8%
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| Price: | 99.75
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| Yield to maturity: | 7.92%
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| Spread: | 357 bps
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| First call: | Feb. 15, 2027 at 103.938
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| Trade date: | May 8
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| Settlement date: | May 22
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| Ratings: | Moody’s: B3
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| S&P: B
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 99.5 to 100
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| Marketing: | Roadshow
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| Original issue: | $1 billion priced in February 2024
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| Fungibility: | Rule 144A add-on notes immediately become fungible; Regulation S add-on notes become fungible following 40-day cooling period
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