Levi Strauss eyes $140 million tap of 6 7/8% notes due 2022 Monday

By Paul A. Harris and Aleesia Forni

Virginia Beach, Va., March 11 - Levi Strauss & Co. is planning a $140 million add-on to its 6 7/8% senior notes due May 1, 2022 (existing ratings B2/B+) on Monday, according to a market source.

An investor call took place at 11 a.m. ET.

BofA Merrill Lynch and J.P. Morgan Securities LLC are the joint bookrunners.

Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC are the co-managers.

The Rule 144A with registration rights notes feature a make-whole call at Treasuries plus 50 basis points until May 1, 2017 and will then be callable at 103.438.

Proceeds, along with cash on hand and a draw on the company's revolver, will be used to prepay Levi Strauss' senior term loan due 2014.

The San Francisco-based apparel maker priced the original $385 million issue at par on April 24, 2012.

Upon registration, the add-on notes will be fungible with the existing notes.

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