American Greetings talks downsized, revised $300 million notes offer with 8¾% coupon at 85

By Paul A. Harris

Portland, Ore., April 5 – American Greetings Corp. talked a downsized, restructured $300 million offering of seven-year senior notes (Caa1/CCC+) with an 8¾% coupon at a price of 85, according to a market source.

The books close at 4 p.m. ET Thursday.

The deal is reduced from $325 million, with $25 million shifted to a planned new term loan, increasing the loan size to $470 million from $445 million.

The tenor of the senior notes is decreased to seven years from eight years. Call protection remains unchanged at three years.

Talk on the deal widened during the time it was on the road, market sources say. Initially talked in the low-to-mid 8% range, guidance blew out to 10½% to 11% early in the April 2 week.

Deutsche Bank Securities Inc., Citizens Capital, ING, BofA Merrill Lynch, HSBC and SMBC Nikko are the joint bookrunners.

Proceeds will be used to purchase the company’s 7 7/8% notes due 2025 in a change-of-control offer related to the acquisition of a 60% stake in the company by Clayton, Dubilier & Rice.

American Greetings is a Cleveland-based designer, manufacturer and distributor of greeting cards, gift packaging, party goods and stationery products.

© 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.