New Issue: American Residential prices upsized $165 million 12% five-year notes to yield 12 1/8%

By Paul A. Harris

St. Louis, April 9 - American Residential Services LLC and ARS Finance, Inc. priced a $165 million issue of 12% five-year senior secured second-lien notes (B2/B/) at 99.541 to yield 12 1/8% on Friday, according to an informed source.

The yield printed 25 basis points wide of the 11¾% area price talk.

UBS Investment Bank is the left bookrunner for the Rule 144A and Regulation S for life offering. Jefferies & Co. is the joint bookrunner. William Blair is the co-manager.

Proceeds will be used to refinance the company's second-lien term loan and to repay a portion of its revolver.

The issuer is a heating, air conditioning, ventilation and plumbing services provider based in Memphis, Tenn.

Issuer:	American Residential Services LLC and ARS Finance, Inc.
Face amount:	$165 million
Proceeds:	$164,243,000 (approximate)
Maturity:	April 15, 2015
Securities:	Senior secured second-lien notes
Left bookrunner:	UBS Investment Bank
Joint bookrunner:	Jefferies & Co.
Co-manager:	William Blair
Coupon:	12%
Price:	99.541
Yield:	12 1/8%
Spread:	947.6 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2012, then callable at 106.0, 103.0, par on and after 2014
Trade date:	April 9
Settlement date:	April 15
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A/Regulation S for life
Price talk:	11¾% area

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