Levi Strauss talks $460 million 10-year notes, €275 million eight-year notes at 7¾% area yield

By Paul A. Harris

St. Louis, April 27 - Levi Strauss & Co. set price talk for two tranches of senior notes (current ratings B2/B+) on Tuesday, according to market sources.

The San Francisco-based apparel maker talked both its $460 million offering of 10-year notes and its €275 million offering of eight-year notes at the 7¾% area.

The deal is expected to price Thursday morning, New York time

Bank of America Merrill Lynch and J.P. Morgan Securities Inc. are the joint bookrunners for the deal, which comes via Rule 144A and Regulation S, with registration rights.

HSBC Securities (USA) Inc., Scotia Capital (USA) Inc. and UBS Investment Bank are the co-managers.

The 10-year notes come with five years of call protection, while the eight-year notes come with four years of call protection.

Both tranches of notes feature a 101% poison put.

Proceeds will be used to refinance the company's 8 5/8% euro senior notes due 2013 and its 9¾% senior notes due 2015 and for general corporate purposes.

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