New Issue: Michaels Stores sells $260 million 5 7/8% senior subordinated notes due 2020 at par

By Paul A. Harris

Portland, Ore., Dec. 16 - Michaels Stores, Inc. priced a $260 million issue of seven-year senior subordinated notes (Caa1/CCC+/) at par to yield 5 7/8% on Monday, according to a market source.

The yield printed 12.5 basis points inside of the 6% to 6¼% yield talk.

Deutsche Bank Securities Inc., Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Guggenheim and Macquarie Capital (USA) Inc. were the joint bookrunners.

The Irving, Texas-based specialty retailer plans to use the proceeds to redeem its 11 3/8% senior subordinated notes due 2016.

Issuer:	Michaels Stores, Inc.
Amount:	$260 million
Maturity:	Dec. 15, 2020
Securities:	Senior subordinated notes
Bookrunners:	Deutsche Bank Securities Inc., Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Guggenheim and Macquarie Capital (USA) Inc.
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	362 bps
First call:	Dec. 15, 2016 at 102.938
Trade date:	Dec. 16
Settlement date:	Dec. 19
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S
Price talk:	6% to 6¼%
Marketing:	Quick to market

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