Published on 3/10/2006 in the Prospect News High Yield Daily.
New Issues: Levi Strauss prices $470 million equivalent in two parts
By Paul A. Harris
St. Louis, March 10 - Levi Strauss & Co. priced $470 million equivalent of high-yield bonds in two tranches (B3/B-) on Friday, according to an informed source.
The San Francisco-based branded apparel company priced a $350 million tranche of new 10-year senior notes at par to yield 8 7/8%. The yield came on the wide end of the 8¾% price talk.
Levi Strauss also priced a €100 million add-on to its existing 8 5/8% senior notes due April 1, 2013 at 103.50, resulting in a yield of 7.771%. The add-on priced on top of the price talk. The original €150 million priced at par on March 7, 2005, bringing the total issue size of the euro-denominated 8 5/8% notes due April 2013 to €250 million.
Banc of America Securities LLC and Citigroup were joint bookrunners for the notes, which were issued via Rule 144A with registration rights and via Regulation S. The co-managers were Goldman Sachs & Co., JP Morgan, Merrill Lynch & Co. and Scotia Capital.
Proceeds plus cash on hand will be used to prepay the company's senior secured term loan.
| Issuer: | Levi Strauss & Co.
|
| Amount: | $470 million equivalent in two tranches
|
| Bookrunners: | Banc of America Securities LLC, Citigroup
|
| Co-managers: | Goldman Sachs & Co., JP Morgan, Merrill Lynch & Co., Scotia Capital
|
| Trade date: | March 10
|
| Settlement date: | March 17
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | April 1, 2016
|
| Security description: | Senior notes
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 414 bps
|
| Call features: | Callable on and after April 1, 2011 at 104.438, 102.958, 101.479, par on and after April 1, 2014
|
| Equity clawback: | Until April 1, 2009 for 35% at 108.875
|
| Price talk: | 8¾% area
|
|
|
| Add-on
|
| Amount: | €100 million
|
| Maturity: | April 1, 2013
|
| Security description: | Add-on to 8 5/8% senior notes
|
| Coupon: | 8 5/8%
|
| Price: | 103.50
|
| Yield: | 7.771%
|
| Spread: | 437 bps
|
| Call features: | Callable after April 1, 2009 at 104.313, 102.156, par on and after April 1, 2011
|
| Equity clawback: | Until April 1, 2008 for 35%
|
| Price talk: | 103.50 area
|
| Original issue: | €150 million priced at par on March 7, 2005
|
| Total issue size: | €250 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.
