By Paul A. Harris
Portland, Ore., Feb. 23 – CDW Corp. priced an upsized $600 million issue of 8.5-year senior notes (Ba3/BB-) at par to yield 5% on Thursday, according to a market source.
The issue size was increased from $500 million.
The yield printed at the tight end of yield talk in the 5 1/8% area.
The deal played to $3.5 billion of orders, according to an investor.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, Barclays, Goldman Sachs & Co. and RBC Capital Markets LLC are the joint bookrunners.
The Lincolnshire, Ill.-based company plans to use the proceeds to fund the redemption of all $600 million of its outstanding 6% senior notes due 2022.
CDW is a technology solutions provider to business, government, education and health care markets.
| Issuers: | CDW LLC and CDW Finance Corp.
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | Sept. 1, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, Barclays, Goldman Sachs & Co., RBC Capital Markets LLC
|
| Co-managers: | U.S. Bancorp Investments Inc., MUFG, Capital One Securities Inc., HSBC Securities (USA) Inc.
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 265 bps
|
| Call protection: | Three years
|
| Equity clawback: | 40% for three years
|
| Trade date: | Feb. 23
|
| Settlement date: | March 2
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 5 1/8% area
|
| Marketing: | Quick to market
|
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