By Paul A. Harris
St. Louis, June 16 - Limited Brands Inc. priced a $500 million issue of 8½% 10-year senior notes (Ba2/BB/) at 96.752 to yield 9% on Tuesday, according to an informed source.
The notes priced on top of the price talk.
Timing on the deal was moved up, according to an informed source, who added that the offering surfaced on Monday with the expectation that it would have a brief roadshow that would carry at least into the middle part of the week.
J.P. Morgan Securities Inc. and Banc of America Securities LLC were joint bookrunners.
Co-managers were BNP Paribas Securities Corp., HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA Inc. and RBS Securities Inc.
The Columbus, Ohio-based specialty retailer will use the proceeds to repay debt and for general corporate purposes.
| Issuer: | Limited Brands Inc.
|
| Face amount: | $500 million
|
| Proceeds: | $483.76 million
|
| Maturity: | June 15, 2019
|
| Security description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Banc of America Securities LLC
|
| Senior co-managers: | Citigroup Global Markets Inc., Wachovia Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., RBS Securities Inc.
|
| Coupon: | 8½%
|
| Price: | 96.752
|
| Yield: | 9%
|
| Spread: | 534 bps
|
| Call protection: | Non-callable, make-whole provision at Treasuries plus 50 bps
|
| Equity clawback: | 35% at 108.50 for first three years
|
| Trade date: | June 16
|
| Settlement date: | June 19
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 9% area
|
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