By Paul A. Harris
St. Louis, April 26 - OSI Restaurant Partners, LLC priced a downsized $550 million issue of eight-year senior notes (Caa1/B-) at par to yield 9 5/8% on Thursday, according to a market source.
The yield was printed at the tight end of the 9 5/8% to 9 7/8% price talk.
Banc of America Securities LLC was the left bookrunner for the Rule 144A with registration rights and Regulation S transaction. Deutsche Bank Securities was the joint bookrunner. ABN Amro, GE Capital Markets, Rabo Securities, SunTrust Robinson Humphrey and Wells Fargo Secrurities were co-managers.
The issue was downsized from $700 million, with $150 million of the financing shifted to the company's term loan.
Proceeds will be used to fund the leveraged buyout of the company by an investor group comprised of Bain Capital Partners, LLC, Catterton Partners and company founders Chris T. Sullivan, Robert D. Basham and J. Timothy Gannon.
The issuer is a Tampa, Fla., casual dining restaurants company.
| Issuer: | OSI Restaurant Partners, LLC
|
| Amount: | $550 million (decreased from $700 million with $150 million shifted to term loan)
|
| Maturity: | May 15, 2015
|
| Security description: | Senior notes
|
| Left bookrunner: | Banc of America Securities LLC
|
| Joint bookrunner: | Deutsche Bank Securities
|
| Co-managers: | ABN Amro, GE Capital Markets, Rabo Securities, SunTrust Robinson Humphrey, Wells Fargo Securities
|
| Coupon: | 9 5/8%
|
| Price: | Par
|
| Yield: | 9 5/8%
|
| Spread: | 500 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until May 15, 2011, then callable at 104.813, 102.407, par on and after May 15, 2013
|
| Equity clawback: | Until May 15, 2010 for 35% at 109.625
|
| Trade date: | April 26
|
| Settlement date: | May 9
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 9 5/8% to 9 7/8%
|
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