New Issue: MemberWorks $150 million 10-year notes yield 9½%

By Paul A. Harris

St. Louis, April 7 - MemberWorks Inc. sold $150 million of 10-year senior notes (B2/B) Wednesday at 98.418 with a 9¼% coupon to yield 9½%, according to a market source.

Price talk was 9% to 9¼%.

Lehman Brothers and UBS Investment Bank ran the books on the Rule 144A/Regulation S issue.

Proceeds will be used to help fund the completed Lavalife Inc. acquisition and for general corporate purposes, including working capital, future acquisitions and purchases of common stock.

The issuer is a Stamford, Conn.-based provider of consumer service and discount programs.

Issuer:	MemberWorks Inc.
Amount:	$150 million
Maturity:	April 1, 2014
Security description:	Senior notes
Bookrunners:	Lehman Brothers, UBS Investment Bank
Coupon:	9¼%
Price:	98.418
Yield:	9½%
Spread:	534 basis points
Call features:	Make-whole call at Treasuries plus 50 basis points until April 1, 2009, then at 104.625, 103.083, 101.542, par on or after April 1, 2012
Equity clawback:	Until April 1, 2007 for 35% at 109.25
Pricing date:	April 7
Settlement date:	April 13
Ratings:	Moody's: B2
	Standard & Poor's: B
Price talk:	9%-9¼%

© 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.