By Paul A. Harris
Portland, Ore., May 15 - Harland Clarke Holdings Corp. priced a $50 million tack-on to its 9¾% senior secured notes due Aug. 1, 2018 (current ratings B1/B+/) at 109 on Wednesday, according to an informed source.
The tack-on notes have a 7.22% yield to worst.
Credit Suisse Securities (USA) LLC was the bookrunner.
Proceeds will be used for general corporate purposes, including the redemption of a portion of the company's 9½% senior notes due 2015.
Harland Clarke is a San Antonio-based provider of integrated payment, marketing and security services and retail products.
Issuer: | Harland Clarke Holdings Corp.
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Amount: | $50 million
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Maturity: | Aug. 1, 2018
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Security description: | Add-on to 9¾% senior secured notes due Aug. 1, 2018
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Bookrunner: | Credit Suisse
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Coupon: | 9¾%
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Price: | 109
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Yield to worst: | 7.22%
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Spread: | 656 bps
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First call: | Aug. 1, 2015 at 104.875
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Equity clawback: | 35% at 109.75 until Aug. 1, 2015
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Trade date: | May 15
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Settlement date: | May 20
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Existing ratings: | Moody's: B1
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| Standard & Poor's: B+
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Distribution: | Rule 144A and Regulation S for life
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Marketing: | Quick to market
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Original issue: | $235 million issue priced at 96 to yield 10.666% on July 17, 2012
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Fungibility: | New notes to be immediately fungible with existing notes
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Total issue size: | $285 million
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