By Paul A. Harris
Portland, Ore., Feb. 23 – Levi Strauss & Co. launched and priced an upsized €475 million issue of senior notes due 2027 (Ba2/BB+/BB) at par to yield 3 3/8% on Thursday, according to a stabilization notice filed by the company.
The issue size was increased from €450 million.
The yield printed 12.5 basis points beneath the tight end of the 3½% to 3 5/8% price talk.
BofA Merrill Lynch was the left bookrunner. Goldman Sachs, JPMorgan, Deutsche Bank, SunTrust Robinson Humphrey Inc., Scotia Capital and Wells Fargo were the joint bookrunners.
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.
| Issuer: | Levis Strauss & Co.
|
| Amount: | €475 million, increased from €450 million
|
| Maturity: | 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Goldman Sachs, JPMorgan, Deutsche Bank, SunTrust, Scotia, Wells Fargo
|
| Coupon: | 3 3/8%
|
| Price: | Par
|
| Yield: | 3 3/8%
|
| Call: | Callable after five years at 101.688
|
| Trade date: | Feb. 23
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody's: Ba2
|
| S&P: BB+
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 3½% to 3 5/8%
|
| Marketing: | Roadshow
|
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