New Issue: Levi Strauss sells $140 million tap of 6 7/8% notes due 2022 at 108 to yield 5.438%

By Paul A. Harris

Portland, Ore., March 11 - Levi Strauss & Co. priced a $140 million add-on to its 6 7/8% senior notes due May 1, 2022 (B2/B+/) at 108 to yield 5.438% on Monday, according to a market source.

BofA Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market deal.

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.

Issuer:	Levi Strauss & Co.
Face amount:	$140 million
Proceeds:	$151.2 million
Maturity:	May 1, 2022
Security description:	Add-on to 6 7/8% senior notes due May 1, 2022
Bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC
Co-managers:	Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) LLC, RBC Capital Markets, UBS Investment Bank, Wells Fargo Securities LLC
Coupon:	6 7/8%
Price:	108
Yield:	5.438%
Spread:	338 bps
First call:	Make-whole call at Treasuries plus 50 bps until May 1, 2017, then callable at 103.438
Trade date:	March 11
Settlement date:	March 14
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A with registration rights
Marketing:	Quick to market
Original issue:	$385 million issue priced at par on April 24, 2012
Fungibility:	Upon registration the add-on notes will become fungible with the existing notes
Total issue size:	$525 million

© 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.