New Issue: Goodman Global sells five-year discount notes to raise $320 million

By Paul A. Harris

St. Louis, Dec. 11 - Goodman Global Group, Inc. raised approximately $320 million via the sale of its five-year senior discount notes (B3/B-/) on Friday, an informed source said.

The notes priced with an 11½% accretion rate, a 12.481% yield to maturity and came at an issue price of 54.607.

The accretion rate came on top of rate talk. The yield printed tight to the 12½% area yield talk. The discount came in line with the 54.30 to 54.90 price talk.

J.P. Morgan Securities Inc. ran the books. Barclays Capital Inc. was the co-manager.

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.

Issuer:	Goodman Global Group, Inc.
Amount at maturity:	$586 million
Proceeds:	$319,997,000 (approximate)
Maturity:	Dec. 15, 2014
Securities:	Senior discount notes
Bookrunner:	J.P. Morgan Securities Inc.
Co-manager:	Barclays Capital Inc.
Accretion rate:	11½%
Price:	54.607
Yield:	12.481%
Spread:	1,026 bps
Call features:	Callable on Dec. 16, 2009 at 102, 104, 102, par on and after Dec. 15, 2012
Change-of-control put:	101%
Trade date:	Dec. 11
Settlement date:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	12½% area yield to maturity, 11½% accrual rate at 54.30 to 54.90

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