Goodman Global sets talk for $320 million five-year discount notes

By Paul A. Harris

St. Louis, Dec. 10 - Goodman Global Group, Inc. set price talk for its $320 million proceeds offering of five-year senior discount notes on Thursday, according to an informed source.

The notes are talked with a 12½% area yield to maturity, an 11½% accrual rate (initial accreted value of $57.2) and to price at 54.30 to 54.90, equivalent to 95.00 to 96.00 of accreted.

The deal is expected to price at the New York equity market open on Friday.

J.P. Morgan Securities Inc. has the books for the Rule 144A and Regulation S for life notes. Barclays Capital Inc. is the co-manager.

The notes will be callable in the first year at 102, with the call premium increasing to 104 in the second year, decreasing back to 102 in the third year, after which the call premium declines to par.

Proceeds, together with cash on hand, will be used to pay a dividend to shareholders and a distribution to option holders.

The issuer is a Houston-based manufacturer of HVAC products.

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