Crocs talks $300 million eight-year notes to yield 4¼% to 4½%, pricing Tuesday

By Paul A. Harris

Portland, Ore., March 9 – Crocs, Inc. talked its $300 million offering of eight-year senior notes (B1/BB-) to yield 4¼% to 4½%, according to market sources.

Official talk comes well inside of initial guidance in the 5% area.

Books close Tuesday morning, and the deal is set to price thereafter, which represents an acceleration of its timing, as it had previously been expected to remain in the market until Wednesday.

Citigroup Global Markets Inc. is the lead bookrunner. BofA Securities Inc., Morgan Stanley & Co. LLC and PNC Capital Markets LLC are the joint bookrunners.

KeyBanc Capital Markets Inc., HSBC Securities (USA) Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the coupon, and a 101% poison put.

The Boulder, Colo.-based footwear supplier plans to use the proceeds to repay its revolver, and for general corporate purposes which may include working capital, capital expenditures, stock repurchases and acquisitions.

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