New Issue: Hillman prices $50 million tap of 10 7/8% notes due 2018 at 109.25

By Paul A. Harris

Portland, Ore., March 11 - Hillman Group, Inc. priced a $50 million add-on to its 10 7/8% senior notes due June 1, 2018 (B3/CCC+/) at 109.25 on Friday, according to an informed source.

The reoffer price came at the rich end of the 109 to 109.25 price talk and results in a 9.092% yield to worst.

Barclays Capital Inc. and Morgan Stanley & Co. Inc. were the joint bookrunners for the quick-to-market deal.

The add-on notes are fungible with the existing issue.

Proceeds will be used to fund the acquisition of TagWorks and to repay bank debt.

The issuer is a Cincinnati-based distributor of stock-keeping units and provider of inventory management and in-store merchandising services.

Issuer:	Hillman Group, Inc.
Face amount:	$50 million
Proceeds:	$54,625,000
Maturity:	June 1, 2018
Security description:	Add-on to the 10 7/8% senior notes
Bookrunners:	Barclays Capital Inc., Morgan Stanley & Co. Inc.
Coupon:	10 7/8%
Price:	109.25
Yield:	9.092%
Spread:	632 bps
Call features:	Make-whole call at Treasuries plus 50 bps until June 1, 2014, then callable at 105.438, 102.719, par on and after June 1, 2016
Equity clawback:	35% at 110.875 until June 1, 2013
Trade date:	March 11
Settlement date:	March 16 with accrued interest
Ratings:	Moody's: B3
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	109 to 109.25
Marketing:	Quick to market
Original issue:	$150 million priced at par on May 18, 2010
Total issue size:	$200 million

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