Plantronics places $500M of senior notes at par to yield 4.75%; terms

Plantronics Inc. has priced a $500 million offering of eight-year senior unsecured notes at the wide end of guidance, sources said. Bookrunners for the deal were Morgan Stanley (left lead, B&D), BofA Securities, J.P. Morgan and Wells Fargo.

Proceeds will be used to refinance the borrower's existing 5.5% senior notes due 2023 and to pay fees and expenses related to the offering. To the extent the net proceeds exceed the aggregate redemption price of the 2023 notes, the company will use the excess funds for general corporate purposes, including repaying amounts outstanding under its secured term loan.

Plantronics designs, manufactures, markets and sells integrated communications and collaboration solutions for corporate customers, small businesses and individuals worldwide.

S&P Global Ratings on Feb. 22 revised its outlook on the company to stable, from negative, noting that Plantronics has been "experiencing strong customer demand for video and headset units due to an accelerated shift to remote and hybrid working and learning environments" and expects this demand to persist in the near-term while the company strengthens its operations to support long-term growth. The rating agency projects Plantronics to achieve mid- to high single-digit-percent revenue growth in fiscal 2022, with leverage decreasing well below 6x in fiscal 2022 and free operating cash flow to debt of about 10%. Terms: