Published on 3/7/2005 in the Prospect News High Yield Daily.
New Issue: Levi Strauss prices $578 million notes in two parts
By Paul A. Harris
St. Louis, March 7 - Levi Strauss & Co. priced $578 million of high-yield notes (Caa3/B-) in two tranches on Monday, according to a syndicate source.
The San Francisco-based apparel-maker priced $380 million of seven-year senior floating-rate notes at par to yield three-month Libor plus 475 basis points. Price talk was in the Libor plus 475 basis points area.
The company also priced €150 million of eight-year senior fixed-rate notes at par to yield 8 5/8%. Price talk was in the 8¾% area.
An add-on, which was to have tapped the company's 9¾% senior notes due Jan. 15, 2015, was dropped due to the strength of the new notes.
Banc of America Securities LLC and Citigroup were joint bookrunners for the Rule 144A notes. Goldman Sachs & Co., Bear Stearns & Co., Credit Suisse First Boston, Scotia Capital and JP Morgan were co-managers.
Proceeds will be used to fund the tender for the company's 11 5/8% senior notes due 2008.
| Issuer: | Levi Strauss & Co.
|
| Amount: | $578 million total proceeds
|
| Bookrunners: | Banc of America Securities LLC, Citigroup
|
| Co-managers: | Goldman Sachs & Co., Bear Stearns & Co., Credit Suisse First Boston, Scotia Capital, JP Morgan
|
| Trade date: | March 7
|
| Settlement date: | March 11
|
| Ratings: | Moody's: Caa3
|
| Standard & Poor's: B-
|
|
|
| Floating-rate tranche
|
| Amount: | $380 million
|
| Maturity: | April 1, 2012
|
| Security description: | Senior floating-rate notes
|
| Coupon: | Three-month Libor plus 475 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 475 basis points
|
| Call features: | Callable after April 1, 2007 at 102, 101, par on and after April 1, 2009
|
| Equity clawback: | Until April 1, 2007 for up to 100% at 104
|
| Price talk: | Libor plus 475 basis points area
|
|
|
| Fixed-rate tranche |
|
| Amount: | €150 million
|
| Maturity: | April 1, 2013
|
| Security description: | Senior fixed-rate notes
|
| Coupon: | 8 5/8%
|
| Price: | Par
|
| Yield: | 8 5/8%
|
| Spread: | 516 basis points
|
| Call features: | Callable after April 1, 2009 at 104.313, 102.156, par on and after April 1, 2011
|
| Equity clawback: | Until April 1, 2008 for 35%
|
| Price talk: | 8¾% area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
