By Paul A. Harris
Portland, Ore., July 24 - Guitar-maker Gibson Brands, Inc. priced an upsized $225 million issue of five-year senior secured notes (B2/B) at par to yield 8 7/8% on Wednesday, according to an informed source.
The deal was upsized from $200 million.
The yield printed 12.5 basis points below the tight end of the 9% to 9¼% yield talk.
Jefferies LLC and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds, including the additional proceeds resulting from the upsizing of the issue, will be used to refinance debt.
Gibson Brands is a Nashville, Tenn.-based designer, manufacturer, marketer and distributor of premium musical instruments, audio equipment and related accessories.
| Issuer: | Gibson Brands, Inc.
|
| Amount: | $225 million, increased from $200 million
|
| Maturity: | Aug. 1, 2018
|
| Securities: | Senior secured notes
|
| Bookrunners: | Jefferies LLC, Wells Fargo Securities LLC
|
| Co-manager: | Fifth Third Securities
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2016, then callable at 106.656
|
| Equity clawback: | 35% at 108.875 until Feb. 1, 2016
|
| Investor put: | 101% upon change of control
|
| Trade date: | July 24
|
| Settlement date: | July 31
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Roadshow
|
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