ServiceMaster shops $1 billion eight-year offering; Thursday pricing seen

By Paul Deckelman

New York, Oct. 31 – ServiceMaster Global Holdings, Inc. plans to sell $1 billion of eight-year senior notes, high yield primaryside sources said Monday, with pricing on the issue expected Thursday.

The issuer will be the company’s ServiceMaster Co. subsidiary.

The Rule 144A/Regulation S for life issue will come to market via Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Capital One Securities, Goldman Sachs & Co., Morgan Stanley & Co. Inc., CIB Natixis, Regions Securities and RBC Capital Markets Corp.

It will be pitched to potential investors via a conference call scheduled for 12:30 p.m. ET on Tuesday.

The notes will be non-callable for the first three years after issue, and then callable at par plus ¾ of the coupon. They will have a three-year equity clawback provision allowing up to the 40% of the issue to be redeemed, as well as a change-of-control provision allowing holders to put the notes back to the company at 101% of their principal plus accrued interest.

ServiceMaster, a Memphis, Tenn.-based provider of janitorial, cleaning, pest-control and systems maintenance services to commercial and residential customers, plans to use the expected new-deal proceeds to refinance existing debt and for general corporate purposes.

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