By Paul A. Harris
Portland, Ore., April 20 – Levi Strauss & Co. priced an upsized $500 million issue of 10-year senior notes (Ba2/BB/BB-) at par to yield 5% on Monday, according to a market source.
The yield printed at the tight end of yield talk in the 5 1/8% area. Early guidance had the deal coming in the low-to-mid 5% yield context. The size was increased from an expected $475 million.
BofA Merrill Lynch was the left bookrunner. Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners.
The San Francisco-based apparel maker plans to use the proceeds in combination with a to-be-determined amount of cash on hand and/or a draw on its amended and restated revolver to purchase its 7 5/8% senior notes due 2020 and for general corporate purposes, which may include repayment of other debt.
| Issuer: | Levi Strauss & Co.
|
| Amount: | $500 million, increased from $475 million
|
| Maturity: | May 1, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | HSBC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Scotia Capital
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 311 bps
|
| Call protection: | Five years
|
| Trade date: | April 20
|
| Settlement date: | April 27
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Fitch: BB-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 5 1/8% area
|
| Marketing: | Quick to market
|
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