By Paul A. Harris
St. Louis, June 23 - Oxford Industries, Inc. priced a $150 million issue of 11 3/8% six-year senior secured notes (B1/BB-/) at 97.353 to yield 12% on Tuesday, according to an informed source.
The yield priced on top of yield talk. The issue price came within the context of the approximately 3 points of original issue discount price talk.
Banc of America Securities LLC and SunTrust Robinson Humphrey Inc. were joint bookrunners.
The notes are secured by a first lien on domestic trademarks and trade names and a second lien on the collateral backing the asset-based loan.
The notes come with three years of call protection.
Proceeds will be used to fund the tender for the company's outstanding 8 7/8% notes due 2011.
The issuer is an Atlanta-based apparel design, sourcing and marketing company.
| Issuer: | Oxford Industries, Inc.
|
| Face amount: | $150 million
|
| Proceeds: | $146.03 million (approximate)
|
| Maturity: | July 15, 2015
|
| Security description: | Senior secured notes
|
| Bookrunners: | Banc of America Securities LLC, SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Credit Suisse, BB&T Capital Markets, Barclays Capital Inc., Morgan Keegan & Co., PNC Capital Markets
|
| Coupon: | 11 3/8%
|
| Price: | 97.353
|
| Yield: | 12%
|
| Spread: | 891 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until July 15, 2012, then callable at a premium
|
| Equity clawback: | 35% at 111.375 until July 15, 2012
|
| Trade date: | June 23
|
| Settlement date: | June 30
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 12% area yield with about 3 points of OID
|
© 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.
