By Paul A. Harris
Portland, Ore., June 6 - Fifth & Pacific Cos., Inc. priced a slightly upsized $152 million add-on to the Liz Claiborne, Inc. 10½% senior secured notes due April 15, 2019 (B2/B) at 108.25 on Wednesday, according to a syndicate source.
The reoffer price, which came in the middle of the 108 to 108.5 price talk, gives an 8.863% yield to maturity and an 8.273% yield to worst.
Fifth & Pacific increased the size from $150 million.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities, LLC were the joint bookrunners for the quick-to-market issue.
Proceeds will be used to repay $37.1 million that the company has drawn under its asset-based revolver for the repurchase in a privately-negotiated transaction of €28.6 million of its 5% euro notes due 2013, to redeem the remaining €52.9 million of those euro notes, and to help finance the buyout option for a 51% interest of its joint venture partner in Kate Spade Japan.
Formerly known as Liz Claiborne, Inc., Fifth & Pacific is a retailer of women's apparel and accessories. It is headquartered in New York City.
The original $205 million issue priced at par on April 1, 2011. A previous $15 million add-on priced at 100.625, resulting in a 10.357% yield to worst, on April 5, 2011.
The issuer for both of those tranches was Liz Claiborne, Inc.
| Issuer: | Fifth & Pacific Cos., Inc.
|
| Face amount: | $152 million
|
| Proceeds: | $164.54
|
| Maturity: | April 15, 2019
|
| Security description: | Add-on to 10 ½% senior secured notes due April 15, 2019
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities, LLC
|
| Coupon: | 10½%
|
| Price: | 108.25
|
| Yield to maturity: | 8.863%
|
| Yield to worst: | 8.273%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2014, then callable at 105.25, 103.5, 102.625, par on and after April 15, 2017
|
| Equity clawback: | 35% at 110.50 until April 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | June 6
|
| Settlement date: | June 8 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 108 to 108.5
|
| Marketing: | Quick to market
|
| Original issue: | $205 million issue priced at par on April 1, 2011
|
| Previous add-on: $15 million priced at 100.625 (10.357% yield to worst)
|
| Total issue size: | $372 million
|
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