American Greetings talks $200 million 10-year notes at 7¼%-7½%, pricing Friday

By Paul A. Harris

St. Louis, May 18 - American Greetings Corp. talked its $200 million offering of 10-year senior notes (Ba2/BB+) at 7¼% to 7½% on Thursday, according to a market source.

The offering is expected to price on Friday.

UBS Investment Bank and JP Morgan are joint bookrunners for the registered offering. KeyBanc Capital Markets is the joint lead manager.

The notes come with five years of call protection and a three-year 35% equity clawback.

Proceeds will be used to repurchase the company's 6.1% senior notes due Aug. 1, 2028. Prior to the note repurchase, all or a portion of the proceeds may be invested in short-term investments.

American Greetings is a Cleveland-based manufacturer of social expression products.

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