Harland Clarke sets Tuesday investor call for $500 million tack-on to 8 3/8% notes due 2022

By Paul A. Harris

Portland, Ore., Oct. 20 – Harland Clarke Holdings Corp. plans to shop a $500 million tack-on to its 8 3/8% senior secured notes due Aug. 15, 2022 on a Tuesday investor call, according to a syndicate source.

The Rule 144A and Regulation S for life deal is set to price on Oct. 31.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Jefferies LLC, Macquarie Capital and Wells Fargo Securities LLC are the joint bookrunners. Fifth Third Bank, Regions and Eagle Hill are the co-managers.

The notes become callable on Feb. 15, 2019 at 104.188 and feature a 35% equity clawback at 108.375 until Feb. 15, 2019 and a 101% poison put.

The San Antonio-based provider of media delivery, payment solutions and marketing services plans intends to use the proceeds to refinance its existing tranche B-5 term loan and tranche B-6 term loan and pay the outstanding borrowings under its ABL facility.

The original $350 million issue priced at par on Feb. 2, 2017.

The Rule 144A tack-on notes will become immediately fungible with the existing Rule 144A notes. The Regulation S tack-on notes will become fungible with the existing Regulation S notes at the conclusion of a 40-day restriction period.

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