New Issue: Michaels Stores prices $250 million tap of 5 7/8% notes at 102 to yield 5.505%

By Paul A. Harris

Portland, Ore., June 5 – Michaels Stores Inc. priced a $250 million add-on to its 5 7/8% senior subordinated notes due Dec. 15, 2020 (Caa1/CCC+) at 102 to yield 5.505% on Thursday, according to a market source.

The reoffer price came at the rich end of the 101.5 to 102 price talk.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co., Wells Fargo Securities LLC, Guggenheim and Macquarie managed the quick-to-market sale.

Proceeds will be used to repay debt.

The issuer is an Irving, Texas-based specialty retailer.

Issuer:	Michaels Stores Inc.
Amount:	$250 million
Maturity:	Dec. 15, 2020
Security description:	Add-on to 5 7/8% senior subordinated notes due Dec. 15, 2020
Bookrunners:	Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co., Wells Fargo Securities LLC, Guggenheim, Macquarie
Coupon:	5 7/8%
Price:	102
Yield:	5.505%
Spread:	344 bps
First call:	Dec. 15, 2016 at 102.938
Trade date:	June 5
Settlement date:	June 16
Ratings:	Moody’s: Caa1
	Standard & Poor’s: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	101.5 to 102
Marketing:	Quick to market
Original issue:	$260 million price at par on Dec. 16, 2013
Total issue size:	$510 million

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