By Paul A. Harris
St. Louis, Dec. 7 - IKON Office Solutions Inc. priced a $150 million issue of four-year senior unsecured floating-rate notes (Ba3/BB) at 99.00 on Friday, according to an informed source.
The notes will bear interest at three-month Libor plus 500 basis points until July 1, 2008, after which the rate will increase to three-month Libor plus 575 bps.
There was no official price talk.
Wachovia Securities ran the books for the Rule 144A with registration rights issue.
The proceeds will be used to help fund the recapitalization of the company related to an 18-month extension of a standstill agreement between IKON and Steel Partners II, LP.
The issuer is a Malvern, Pa., integrated document management systems and solutions provider.
| Issuer: | IKON Office Solutions Inc.
|
| Amount: | $150 million
|
| Maturity: | Jan. 1, 2012
|
| Security description: | Senior unsecured floating-rate notes
|
| Bookrunner: | Wachovia Securities
|
| Coupon: | Three-month Libor plus 500 bps until July 1, 2008, then three-month Libor plus 575 bps
|
| Price: | 99.00
|
| Call features: | Callable at 103 through April 2009, 102 through January 2010, par thereafter
|
| Change-of-control put: | 101
|
| Trade date: | Dec. 7
|
| Settlement date: | Dec. 20
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | None
|
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