Playboy quick-to-market $110 million notes talked at 11% area, pricing Thursday

By Paul A. Harris

St. Louis, March 5 - Playboy Enterprises, Inc.'s offering of $110 million senior secured notes due 2010 (B2/B) is talked at a yield in the 11% area, an informed source said Wednesday.

The deal, to be issued through PEI Holdings, Inc., is expected to price Thursday.

Banc of America Securities is the bookrunner.

The Rule 144A notes are non-callable for four years.

Proceeds will be used to repay debt under Playboy's existing credit facility, to pay a portion of the deferred purchase price for its acquisition of Califa and for general corporate purposes.

The issuer is a multimedia entertainment company based in Chicago.

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