New Issue: Affinion prices $475 million 7 7/8% eight-year notes to yield 8%

By Paul A. Harris

St. Louis, Nov. 8 - Affinion Group, Inc. priced a $475 million issue of 7 7/8% eight-year senior notes (B3/B-/) at 99.255 to yield 8% on Monday, according to an informed source.

The yield printed at the wide end of the 7¾% to 8% price talk.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch were the joint bookrunners for the quick-to-market sale.

The Stamford, Conn.-based marketing services and customer loyalty company will use the proceeds to redeem its notes maturing in 2013.

Issuer:	Affinion Group, Inc.
Face amount:	$475 million
Proceeds:	$471.46 million (approximate)
Maturity:	Dec. 15, 2018
Securities:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., Bank of America Merrill Lynch
Coupon:	7 7/8%
Price:	99.255
Yield:	8%
Spread:	595 bps
Call features:	Callable on Dec. 15, 2014 at 103.938, 101.969, par on and after Dec. 15, 2016
Equity clawback:	35% at 107.875 until Dec. 15, 2013
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights and Regulation S
Trade date:	Nov. 8
Price talk:	7¾% to 8%
Marketing:	Quick to market

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