New Issue: Heckler & Koch prices €295 million 9½% seven-year notes at 98.75 to yield 9¾%

By Paul A. Harris

Portland, Ore., May 6 - Heckler & Koch GmbH priced a restructured €295 million issue of 9½% seven-year senior secured notes (Caa1/CCC+/) at 98.75 to yield 9¾% on Friday, according to an informed source.

The yield printed on top of price talk.

A planned dollar-denominated tranche was withdrawn.

Citigroup Global Markets ran the books for the deal, the overall size of which was increased slightly from €290 million.

Proceeds will be used to refinance existing operating company and holding company debt.

The issuer is an Oberndorf, Germany-based small-arms maker.

Issuer:	Heckler & Koch GmbH
Face amount:	€295 million, increased from €290 million; dollar-denominated notes withdrawn
Proceeds:	€291,313,500 (approximate)
Maturity:	May 15, 2018
Securities:	Senior secured notes
Bookrunner:	Citigroup Global Markets
Co-manager:	Close Brothers
Coupon:	9½%
Price:	98.75
Yield:	9¾%
Spread:	676 bps
Call features:	Callable on May 15, 2014 at 107.125, 104.75, 102.375, par on and after May 15, 2017
Trade date:	May 6
Settlement date:	May 12
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	9¾% area
Marketing:	Roadshow

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