Gibson Brands talks $150 million tap of 8 7/8% notes due 2018 at 104-104.5; books close Tuesday

By Paul A. Harris

Portland, Ore., May 6 - Gibson Brands, Inc. talked a $150 million add-on to its 8 7/8% senior secured notes due Aug. 1, 2018 (B3/B-/) at 104 to 104.5, an informed source said.

Books close at noon ET on Tuesday, and the deal, via bookrunner Jefferies LLC, is set to price shortly thereafter.

The Rule 144A for life notes become callable on Feb. 1, 2016 at 106.656.

Proceeds will be used to fund the acquisition of WOOX Innovations Ltd., the consumer electronics division of Royal Phillips Electronics.

Gibson Brands is a Nashville, Tenn.-based designer, manufacturer, marketer and distributor of premium musical instruments, audio equipment and related accessories.

The original $225 million issue priced at par on July 24, 2013.

The add-on notes will be fungible with the original notes at the close of the acquisition and release of proceeds from escrow.

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