By Abigail W. Adams
Portland, Me., May 25 – WernerCo subsidiaries Werner FinCo LP and Werner FinCo, Inc. priced a $400 million issue of five-year senior secured first-lien notes (Caa1/B-) on Thursday at 99.067 with a coupon of 11½% for a yield of 11¾%, according to a market source.
Early guidance was for a yield in the 11¾% to 12% area.
The notes carry two years of call protection.
J.P. Morgan Securities LLC is leading the Rule 144A and Regulation S for life offering.
The capital raise is coming concurrently with an exchange offer and consent solicitations.
The company concurrently launched an exchange offer for any and all outstanding 8¾% senior notes due 2025 for new junior lien senior secured notes due 2028 and consent solicitations to eliminate substantially all restrictive covenants in the 2025 notes, according to a company news release.
Approximately 81% of holders of the 2025 notes have signed support agreements for the consent solicitations and agreed to tender their notes in the exchange.
Pricing of the exchange notes will be determined by the pricing of the first-lien notes.
WernerCo is an Itasca, Ill.-based manufacturer and distributor of fall protection and light-duty construction equipment and secure storage systems.
| Issuers: | Werner FinCo LP and Werner FinCo, Inc.
|
| Amount: | $400 million
|
| Issue: | Senior secured first-lien notes
|
| Maturity: | June 15, 2028
|
| Lead bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 11½%
|
| Price: | 99.067
|
| Yield: | 11¾%
|
| Spread: | 786 bps
|
| First call: | Two years
|
| Trade date: | May 25
|
| Settlement date: | June 9
|
| Ratings: | Moody’s: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 11¾% to 12% area
|
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