Published on 5/1/2013 in the Prospect News High Yield Daily.
New Issue: Landry's upsizes to $235 million, prices tap of 9 3/8% notes at 108.75 to yield 7.73%
By Paul A. Harris
Portland, Ore., May 1 - Landry's, Inc. priced an upsized $235 million add-on to its 9 3/8% senior notes due May 1, 2020 (Caa1/CCC+) at 108.75 to yield 7.73% on Wednesday, according to a syndicate source.
The deal was increased from $200 million.
The reoffer price came at the rich end of the 108.5 to 108.75 price talk.
Timing was moved ahead. When it was announced on Wednesday morning, the deal was expected to be in the market overnight and to price on Thursday.
Jefferies LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were joint bookrunners for the quick-to-market add-on.
The Houston-based restaurant, hospitality and entertainment company plans to use the proceeds to repay its revolver and for general corporate purposes.
| Issuer: | Landry's, Inc.
|
| Amount: | $235 million, increased from $200 million
|
| Proceeds: | $255.6 million
|
| Maturity: | May 1, 2020
|
| Security description: | Add-on to 9 3/8% senior notes due May 1, 2020
|
| Bookrunners: | Jefferies LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
|
| Coupon: | 9 3/8%
|
| Price: | 108.75
|
| Yield to maturity: | 7.73%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until May 1, 2015, then callable at 107.031, 104.688, 102.344, par on and after May 1, 2018
|
| Equity clawback: | 35% at 109.375 until May 1, 2015
|
| Investor put: | 101% upon change of control
|
| Trade date: | May 1
|
| Settlement date: | May 6 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 108.5 to 108.75
|
| Marketing: | Quick to market
|
| Original issue: | $425 million priced at par in April 2012
|
| Fungibility: | Add-on notes will be immediately fungible with existing notes
|
| Total issue size: | $660 million
|
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