New Issue: American Reprographics sells downsized $200 million 10½% notes at 97.824 to yield 11%

By Paul A. Harris

St. Louis, Nov. 23 - American Reprographics Co. priced a downsized $200 million issue of 10½% six-year senior notes (B1/BB-/) at 97.824 to yield 11% on Tuesday, according to an informed source.

The coupon and yield came on top of price talk.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities were the joint bookrunners for the deal, which was downsized from $220 million.

In a restructuring of the deal, the maturity of the bonds was decreased to six years from eight years. Call protection was decreased to three years from four years. There were also covenant changes.

The Walnut Creek, Calif.-based provider of business-to-business document management will use the proceeds to repay and retire its existing senior secured credit facility, to pay swap termination costs and for general corporate purposes.

Issuer:	American Reprographics Co.
Face amount:	$200 million, decreased from $220 million
Proceeds:	$195,648,000
Maturity:	Dec. 15, 2016 (Maturity decreased from eight years)
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities
Co-manager:	Citigroup Global Markets Inc.
Coupon:	10½%
Price:	97.824
Yield:	11%
Spread:	893 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2013, then callable at 105.25, 102.625, par on and after Dec. 15, 2015 (Call protection decreased from four years)
Equity clawback:	35% at 110.50 until Dec. 15, 2013
Trade date:	Nov. 23
Settlement date:	Dec. 1
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	10½% coupon to yield 11%

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