By Paul A. Harris
Portland, Ore., Dec. 1 – Cleaver-Brooks, Inc. priced a downsized $375 million issue of five-year senior secured notes (B2/B) at par to yield 7 7/8% on Friday, according to a syndicate source.
The issue size was decreased from $395 million.
The yield printed in the middle of the 7¾% to 8% yield talk.
There were also covenant changes. The start date of the cash net income restricted payments starter basket was moved to Oct. 1, 2017 from Oct. 1, 2012. A $10 million starter basket within the restricted payments builder was added.
Joint bookrunner RBC Capital Markets LLC will bill and deliver. SunTrust Robinson Humphrey Inc. and Credit Suisse Securities (USA) LLC were also joint bookrunners.
The Thomasville, Ga.-based designer and manufacturer of boiler room systems plans to use the proceeds to refinance its 8¾% senior secured notes due 2019 and 9¾% senior secured notes due 2019.
| Issuer: | Cleaver-Brooks, Inc.
|
| Amount: | $375 million, decreased from $395 million
|
| Maturity: | March 1, 2023
|
| Securities: | Senior secured notes
|
| Bookrunners: | RBC Capital Markets LLC (bill and deliver), SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 574 bps
|
| Call protection: | Two years
|
| Trade date: | Dec. 1
|
| Settlement date: | Dec. 11
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A for life
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Roadshow
|
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