By Kenneth Lim
Boston, June 4 - American Achievement Intermediate Holding Corp. placed up to $11.8 million of 25% preferred stock, according to a filing with the Securities and Exchange Commission.
The preferreds may be called at any time and may be put under certain circumstances. The early redemption price will initially be 125% of the principal, decreasing each year after issuance to 100% three years following issuance.
Holders of the new preferreds will also buy warrants to purchase common stock of the issuer's parent company, American Achievement Group Holding Corp.
Proceeds will be used to help fund the issuer's parent company's cash tender offer for all $110.09 million principal amount of 12.75% senior pay-in-kind notes due 2012. The parent company is offering $210.11 per $1,000 note, with an early tender premium of $20 per note.
The issuer is a newly formed subsidiary of American Achievement Group Holding, an Austin, Texas-based maker of commemoration products.
| Issuer: | American Achievement Intermediate Holding Corp.
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| Issue: | Preferred stock
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| Amount: | $11.8 million
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| Dividend: | 25%
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| Call: | Initially callable at 125% of principal, decreasing to 100% after three years
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| Put: | Putable under certain circumstances at 125% of principal, decreasing to 100% after three years
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| Distribution: | Private placement
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