Levitz restructures $130 million seven-year bond offering into two tranches

By Paul A. Harris

St. Louis, Oct. 28 - Levitz Home Furnishings restructured its $130 million high-yield bond offering into two tranches on Thursday, according to an informed source.

Pricing is expected to take place on Friday.

The Woodbury, N.Y.-based home furnishings company plans to sell $100 million of series A seven-year senior secured notes (B3/B-). Price talk is in the 12% area.

The company also plans to sell $30 million of series B seven-year senior secured notes that are talked to yield in the 15% area.

The deal had previously been in the market as a single $130 million tranche of seven-year senior secured notes (B3/B-).

The A tranche has payment priority over the B tranche, and therefore lower ratings are expected to emerge on the B tranche.

Jefferies & Co. has the books for the Rule 144A offering.

Proceeds will be used to repay debt.

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