By Paul A. Harris
St. Louis, March 6 - Anixter International Inc. priced a $200 million issue of 10% five-year senior bullet notes (Ba2/BB+/BB+) at 92.625 to yield 12% on Friday, according to informed sources.
The yield was printed 50 basis points beyond the wide end of the 11¼% to 11½% yield talk, while the issue price came cheap to talk that envisioned the notes pricing in the mid-90s.
An informed source commented that given where secondary market levels were over the past two days it was just a matter of getting across the finish line.
Banc of America Securities LLC, J.P. Morgan Securities Inc. and Wachovia Capital Markets were joint bookrunners for the public issue, which generated $181.25 million of proceeds. Scotia Capital was the co-manager.
Proceeds will be used to repay short-term debt and for general corporate purposes.
Anixter is a Glenview, Ill.-based distributor of communications and security products, electrical and electronic wire and cable, fasteners and other small parts.
| Issuer: | Anixter Inc.
|
| Face amount: | $200 million
|
| Proceeds: | $181.25 million
|
| Maturity: | March 15, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC, J.P. Morgan Securities Inc., Wachovia Capital Markets
|
| Co-manager: | Scotia Capital (USA) Inc.
|
| Coupon: | 10%
|
| Price: | 92.625
|
| Yield: | 12%
|
| Call protection: | Non-callable, with make-whole at Treasuries plus 50 bps
|
| Equity clawback: | Until March 15, 2012 for 35% at 110.0
|
| Trade date: | March 6
|
| Settlement date: | March 11
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 11¼% to 11½% discounted to mid-90s
|
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