New Issue: Allen Systems prices $300 million six-year notes at par to yield 10½%

By Paul A. Harris

St. Louis, Nov. 12 - Allen Systems Group, Inc. priced a $300 million issue of six-year senior secured second-lien notes (B2/B/) at par to yield 10½% on Friday, according to an informed source.

The yield printed on top of the price talk.

Bank of America Merrill Lynch has the books for the Rule 144A for life offering.

The Naples, Fla.-based enterprise software provider plans to use the proceeds to refinance debt and to fund a dividend.

Issuer:	Allen Systems Group, Inc.
Amount:	$300 million
Maturity:	Nov. 15, 2016
Securities:	Senior secured second-lien notes
Bookrunner:	Bank of America Merrill Lynch
Co-manager:	KeyBanc Capital Markets Inc.
Coupon:	10½%
Price:	Par
Yield:	10½%
Spread:	882 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 15, 2013, then callalble at 105.25, 102.625, par on and after Nov. 15, 2015
Equity clawback:	35% at 110.50 until Nov. 15, 2013
Trade date:	Nov. 12
Settlement date:	Nov. 22
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A for life and Regulation S
Price talk:	10½% area
Marketing:	Roadshow

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