Levi Strauss launches upsized €475 million 10-year notes at 3 3/8%; pricing Thursday

By Paul A. Harris

Portland, Ore., Feb. 23 – Levi Strauss & Co. launched an upsized €475 million offering of 10-year senior notes (Ba2/BB+/BB) at 3 3/8%, a market source said.

The launch comes tighter than the 3½% to 3 5/8% price talk.

The deal, which is upsized from €450 million, is set to price Thursday.

BofA Merrill Lynch is the left bookrunner for the Rule 144A and Regulation S with registration rights offering. Goldman Sachs, JPMorgan, Deutsche Bank, SunTrust Robinson Humphrey Inc., Scotia Capital and Wells Fargo are the joint bookrunners.

The notes become callable after five years at par plus 50% of coupon and feature a 101% poison put.

The San Francisco-based apparel maker plans to use the proceeds, together with cash on hand, to purchase its 6 7/8% senior notes due 2022. The additional proceeds resulting from the €25 million increase in the issue size will be used to reduce the amount of balance sheet cash required to fund the tender for the 6 7/8% notes.

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