By Paul A. Harris
Portland, Ore., Aug. 13 – Veritas US Inc. and Veritas Bermuda Ltd. priced an upsized $1 billion issue of five-year senior secured notes (B2/B) at par to yield 7½% on Thursday, according to market sources.
The issue size increased from $600 million with the shift of $400 million of proceeds from the dollar-denominated and euro-denominated term loans. With the shift of proceeds the U.S. term loan decreased to $1.325 billion from $1.55 billion and the euro term loan decreased to €550 million from €690 million.
The notes’ yield came at the tight end of yield talk and initial guidance, both of which had been set at 7½% to 7¾%.
The issue was heard to be playing to around $2 billion of demand, according to a bond trader, who had the new Veritas 7½% notes due 2025 trading par ¼ bid, par ½ offered late Thursday afternoon.
Morgan Stanley & Co. LLC is the left lead bookrunner. Joint bookrunners are BofA Securities Inc., UBS Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Jefferies LLC, Mizuho Securities USA Inc. and SMBC Nikko Securities America Inc.
The Santa Clara, Calif.-based data management company plans to use the proceeds, together with the loans and cash on hand, to repay debt under its existing term loan and revolver.
| Issuer: | Veritas US Inc. and Veritas Bermuda Ltd.
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| Amount: | $1 billion, increased from $600 million
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| Maturity: | Sept. 1, 2025
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| Securities: | Senior secured notes
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| Left lead bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
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| Joint bookrunners: | BofA Securities Inc., UBS Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Jefferies LLC, Mizuho Securities USA Inc. and SMBC Nikko Securities America Inc.
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| Coupon: | 7½%
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| Price: | Par
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| Yield: | 7½%
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| Spread: | 720 bps
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| First call: | Sept. 1, 2021 at 103.75
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| Equity clawback: | 40% at 107.5 until Sept. 1, 2021
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| Trade date: | Aug. 13
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| Settlement date: | Aug. 20
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| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7½% to 7¾%
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| Marketing: | Roadshow
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