New Issue: Brand Industrial sells $300 million tap of 8½% notes due 2025 at 105.5

By Paul A. Harris

Portland, Ore., Oct. 26 – Brand Industrial Services, Inc. priced a $300 million add-on to its 8½% senior notes due July 15, 2025 (Caa2/CCC+) at 105.5 to yield 7.299% in a quick-to-market Thursday trade, according to a market source.

The reoffer price came at the cheap end of the 105.5 to 106 price talk.

Barclays was the left bookrunner for the Rule 144A and Regulation S for life add-on. Goldman Sachs & Co., Natixis, ING, SG CIB, Credit Agricole CIB and SMBC Nikko were the joint bookrunners.

The Kennesaw, Ga.-based provider of specialized services to energy, industrial and infrastructure customers plans to use the proceeds to pay off its revolving credit facility, as well as to partially repay amounts outstanding under its AR financing facility, and for general corporate purposes, including potential acquisitions.

Issuer:	Brand Industrial Services, Inc.
Amount:	$300 million
Maturity:	July 15, 2025
Security description:	Add-on to 8½% senior notes due July 15, 2025
Left bookrunner:	Barclays
Joint bookrunners:	Goldman Sachs, Natixis, ING, SG, Credit Agricole, SMBC
Coupon:	8½%
Price:	105.5
Yield:	7.299%
Spread:	493 bps
First call:	July 15, 2020 at 106.375
Equity clawback:	40% equity at 108.5 until July 15, 2020
Trade date:	Oct. 26
Settlement date:	Nov. 1
Ratings:	Moody's: Caa2
	S&P: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	105.5 to 106
Marketing:	Quick to market
Original issue:	$700 million priced at par on June 16, 2017
Fungibility:	Add-on notes to become fungible with original notes
Total issue size:	$1 billion

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