New Issue: Harland Clarke sells upsized $350 million 5.5-year secured notes at par to yield 8 3/8%

By Paul A. Harris

Portland, Ore., Feb. 2 – Harland Clarke Holdings Corp. priced an upsized $350 million issue of senior secured notes due Aug. 15, 2022 (B1/BB-) at par to yield 8 3/8% on Thursday, according to a syndicate source.

The issue size was increased from $300 million.

The yield printed at the tight end of yield talk in the 8½% area.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Jefferies LLC and Macquarie Capital were the joint bookrunners.

The San Antonio-based provider of media delivery, payment solutions and marketing services plans to use the proceeds to refinance its term loan B-3 and its existing senior secured notes due 2018.

Issuer:	Harland Clarke Holdings Corp.
Amount:	$350 million, increased from $300 million
Maturity:	Aug. 15, 2022
Securities:	Senior secured notes
Bookrunners:	Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Jefferies LLC, Macquarie Capital
Co-manager:	Eagle Hill
Coupon:	8 3/8%
Price:	Par
Yield:	8 3/8%
Spread:	633 bps
First call:	Feb. 15, 2019 at 104.188
Equity clawback:	35% at 108.375 until Feb. 15, 2019
Trade date:	Feb. 2
Settlement date:	Feb. 8
Ratings:	Moody's: B1
	S&P: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	8½% area
Marketing:	Roadshow

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