By Paul Deckelman
New York, March 26 - Matalan Finance Ltd., a unit of British clothing store chain operator Matalan Retail Ltd., priced a £225 million offering of seven-year senior notes (Ba3/B) at par to yield 9 5/8%, high yield primary sources said Friday.
They said the new 9 5/8% notes due 2017 came at the tight end of price talk.
Goldman Sachs International was the bookrunner for the Rule 144A and Regulation S offering. Lloyds TSB Corporate Markets was the joint lead manager, while Royal Bank of Scotland was co-manager.
The bonds are non-callable until March 31, 2013, other than a make-whole call at 50 basis points over Gilts, and are callable after that according to a set schedule. There is an equity clawback provision in effect for the first three years after issue.
Holders can put the bonds back to the company at 101% of principal plus accrued interest in the event of a change of control.
Matalan, a Skelmersdale, England-based budget clothing, shoe and mobile phone retailer operating 200 stores, plans to use the deal proceeds, along with term loan and revolving credit borrowings, to repay debt and to pay a £225 million dividend to its shareholders.
| Issuer: | Matalan Finance Ltd.
|
| Issue: | Senior notes
|
| Amount: | £225million
|
| Maturity: | March 31, 2017
|
| Bookrunner: | Goldman Sachs International
|
| Joint Lead Manager: | Lloyds TSB Corporate Markets
|
| Co-manager: | Royal Bank of Scotland
|
| Coupon: | 9 5/8%
|
| Price: | Par
|
| Yield: | 9 5/8%
|
| Call features: | Non-callable until March 31, 2013, other than make-whole call at 50 basis points over Gilts, then callable at 104.8125; callable on or after March 31, 2014 at 102.4063; finally callable at par on or after March 31, 2015
|
| Equity clawback: | For up to 35% of the issue at 109.625% until March 31, 2013
|
| Change of control: | Put at 101% of principal plus accrued interest
|
| Trade date: | March 24 |
|
| Settlement date: | March 31
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S |
|
| Marketing: | Via roadshow
|
© 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.
