By Paul A. Harris
Portland, Ore., July 30 – G-III Apparel Group Ltd. priced an upsized $400 million issue of 7 7/8% five-year senior secured notes (Ba3/BB) at par to yield 7.873% on Thursday, according to market sources.
The issue size increased from $350 million.
S&P’s BB rating on the notes represents a one-notch downgrade, reflecting the upsizing of the notes sale.
The yield printed tight to yield talk in the 8% area. Initial guidance was 8% to 8¼%.
The deal underwent covenant changes.
Joint bookrunner Barclays will bill and deliver.
The New York-based apparel and accessories company plans to use the proceeds to repay its term loan due 2022 and for general corporate purposes, including cash to its balance sheet.
| Issuer: | G-III Apparel Group Ltd.
|
| Amount: | $400 million, increased from $350 million
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| Maturity: | Aug. 15, 2025
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| Securities: | Senior secured notes
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| Bookrunners: | Barclays (bill and deliver), J.P. Morgan Securities LLC, BofA Securities Inc. and Capital One Securities Inc.
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| Co-managers: | HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc., Citizens Capital Markets Inc. and TD Securities (USA) LLC
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| Coupon: | 7 7/8%
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| Price: | Par
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| Yield to maturity: | 7.873%
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| Spread: | 763 bps
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| First call: | Aug. 15, 2022 at 103.938
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| Special call: | 10% of the notes annually at 103 during the non-call period
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| Trade date: | July 30
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| Settlement date: | Aug. 7
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| Ratings: | Moody's: Ba3
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| S&P: BB
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% area
|
| Marketing: | Roadshow
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