New Issue: Levi Strauss sells upsized $385 million 6 7/8% 10-year notes at par

By Paul A. Harris

Portland, Ore., April 24 - Levi Strauss & Co. priced an upsized $385 million issue of 10-year senior notes (B2/B+/B+) at par to yield 6 7/8% on Tuesday, according to a syndicate source.

The yield printed on top of price talk.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market issue, which was upsized from $350 million.

The San Francisco-based apparel maker plans to use the proceeds to fund the tender offer for its outstanding 8 7/8% senior notes due 2016 and for general corporate purposes, which may include repaying other outstanding debt, including any 2016 notes not tendered.

Issuer:	Levi Strauss & Co.
Amount:	$385 million, upsized from $350 million
Maturity:	May 1, 2022
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC
Co-managers:	Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC, Wells Fargo Securities LLC
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	492 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 1, 2017, then callable at a premium
Trade date:	April 24
Settlement date:	May 8
Ratings:	Moody's: B2
	Standard & Poor's: B+
	Fitch: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6 7/8% area
Marketing:	Quick to market

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