New Issue: HSN prices $240 million 11¼% eight-year notes at 99.352 to yield 11 3/8%

By Paul A. Harris

St. Louis, July 16 - HSN, Inc. priced a slightly downsized $240 million issue of 11¼% eight-year senior notes (Ba2/BB) at 99.352 to yield 11 3/8% on Wednesday, according to an informed source.

The yield was printed 37.5 basis points beyond the wide end of the 10¾% to 11% price talk.

Banc of America Securities LLC, JP Morgan and Morgan Stanley were joint bookrunners for the Rule 144A with registration rights/Regulation S issue, which was downsized from $250 million.

Proceeds are to be used in conjunction with spin off of the New York-based television and online retail services provider, formerly the Home Shopping Network, from IAC/InterActiveCorp.

Issuer:	HSN, Inc.
Amount:	$240 million (decreased from $250 million)
Maturity:	Aug. 1, 2016
Security description:	Senior notes
Bookrunners:	Banc of America Securities LLC, J.P. Morgan Securities Inc., Morgan Stanley
Senior co-managers:	Barclays Capital, Merrill Lynch & Co., Wachovia Securities
Co-managers:	Daiwa Securities, Scotia Capital, BB&T, Morgan Keegan, Fifth Third, Wells Fargo Securities
Coupon:	11¼%
Price:	99.352
Yield:	11 3/8%
Spread:	761 bps
Call protection:	Four years
Equity clawback:	Until Aug. 1, 2011 for 357 at 111.25
Trade date:	July 16
Settlement date:	July 28
Ratings:	Moody's: Ba2
	Standard & Poor's: BB
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	10¾% to 11%

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