Whispers on TruckPro’s secured bond offering have drifted to an 11% coupon with a 94 OID to yield roughly 12.5%, according to three sources following the deal. Pricing is now expected tomorrow, the three sources and one additional source said.

Initial whispers on the USD 300m secured notes, which back Platinum Equity’s LBO of the company, circulated last week in the 10% area. The deal was originally intended to price on Tuesday (8 October) after a week-long roadshow.

Lead BofA has also indicated structural changes are in the works, including cutting the tenor to five years from seven and tightening covenants, one of the sources added.

A large anchor order at the revised terms is expected to help push the deal to the finish line, the source said.

Investors showed skepticism of the company’s pro forma adjusted EBITDA calculations, and concern over disappointing post-LBO earnings at some of Platinum’s other portfolio companies, as reported.

Platinum is contributing USD 139m of equity to the acquisition of TruckPro, an auto parts distributor, from Harvest Partners. The financing will also include a USD 75m ABL, which will be undrawn at close.

BofA did not respond to a request for comment. Platinum and Harvest did not respond to requests for comment.

2019 Debtwire