NBTY parent eyes $500 million five-year PIK toggle notes this week

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Oct. 11 - Alphabet Holding Co., Inc., the parent company of NBTY, Inc., is planning to price a $500 million issue of five-year senior contingent cash pay notes (/B-/) this week, a market source said.

An investor call was held at 11 a.m. ET Thursday, and pricing is expected late Thursday or early Friday.

Barclays, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are joint bookrunners for the Rule 144A with registration rights deal.

The PIK coupon will be set 75 bps higher than cash coupon. The notes will be callable after one year at 103, then at 102, 101 and declining to par after four years.

The notes carry a 35% equity clawback during the non-call period.

The Ronkonkoma, N.Y.-based company plans to use proceeds, together with cash on hand, to fund a distribution to equity shareholders.

NBTY is a manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.