By Paul A. Harris
St. Louis, June 2 - Affinion Group, Inc. priced an upsized $150 million issue of 10 1/8% senior mirror notes due Oct. 15, 2013 (expected ratings B2/B-) at 91.00 to yield 12.877% on Tuesday, according to an informed source.
The issue price came spot-on to the 91.00 area price talk.
Banc of America Securities LLC and Deutsche Bank Securities Inc. were joint bookrunners for the issue, which was upsized from $125 million.
Proceeds will be used for general corporate purposes, which could include working capital, capital expenditures and the repurchase of the company's debt or the holding company's debt.
The original $270 million issue priced at 98.662 to yield 10 3/8% on Oct. 4, 2005. Affinion also did a $34 million add-on, which priced at 103.50 on May 1, 2006 to yield 9.29%.
However the mirror notes are non-fungible with either the original issue or the previous add-on.
The Norwalk, Conn.-based company is a direct marketer of membership, insurance and package enhancement products.
| Issuer: | Affinion Group, Inc.
|
| Face amount: | $150 million, increased from $125 million
|
| Proceeds: | $136.5 million
|
| Maturity: | Oct. 15, 2013
|
| Security description: | Non-fungible senior notes mirroring 10 1/8% senior notes due Oct. 15, 2013
|
| Bookrunners: | Banc of America Securities LLC, Deutsche Bank Securities Inc.
|
| Coupon: | 10 1/8%
|
| Price: | 91.00
|
| Yield: | 12.877%
|
| Spread: | 1,063 bps
|
| First call: | Oct. 15, 2009 at 105.063
|
| Trade date: | June 2
|
| Settlement date: | June 5 with accrued interest
|
| Expected ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 91.00 area
|
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