Published on 11/16/2011 in the Prospect News High Yield Daily.
New Issue: American Greetings prices $225 million 7 3/8% 10-year notes at par
By Paul A. Harris
Portland, Ore., Nov. 16 - American Greetings Corp. priced a $225 million issue of 10-year senior notes (Ba2/BB+/) at par to yield 7 3/8% on Wednesday, according to an informed source.
The yield printed at the tight end of the 7½% area price talk.
Timing was moved ahead. The deal was launched on Tuesday and expected to be in the market for two to three days.
J.P. Morgan Securities LLC and Bank of America Merrill Lynch were the joint bookrunners.
The notes feature a make-whole call at Treasuries plus 50 basis points until Dec. 1, 2016, then become callable at 103.688. A special call provision, which would have allowed the issuer to redeem 10% of the issue annually during the non-call period, was dropped from the deal.
The Cleveland-based greeting card company plans to use the proceeds, together with cash on hand, to finance a tender for outstanding 7 3/8% senior notes due 2016.
| Issuer: | American Greetings Corp.
|
| Amount: | $225 million
|
| Maturity: | Dec. 1, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Bank of America Merrill Lynch
|
| Joint lead manager: | KeyBanc Capital Markets Inc.
|
| Co-managers: | PNC Capital Markets LLC, Scotia Capital (USA) Inc., Mitsubishi UFJ Securities (USA), Inc., RBS Securities Inc.
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 533 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2016, then callable at 103.688, 102.458, 101.229, par on and after Dec. 1, 2019; a special call provision which would have allowed the issuer to redeem 10% of the issue annually during the non-call period was dropped
|
| Equity clawback: | 35% at 107.375 until Dec. 1, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 30
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 7½% area
|
| Marketing: | Quick to market
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
