Quiksilver sets Wednesday investor call for $500 million two-part notes offer

By Paul A. Harris

Portland, Ore., July 9 - Quiksilver, Inc. has an investor conference call planned for 12:30 p.m. ET on Wednesday to discuss a $500 million two-part offering of high-yield notes, according to a syndicate source.

The deal is expected to price late in the present week.

It includes a $250 million tranche of five-year senior secured notes. The Rule 144A for life secured notes come with 2.5 years of call protection.

In addition the Huntington Beach, Calif.-based company is offering a $250 million tranche of senior unsecured notes. The Rule 144A with registration rights unsecured notes become callable in three years at par plus 75% of the coupon.

BofA Merrill Lynch is the left bookrunner. Morgan Stanley & Co. and Wells Fargo Securities LLC are the joint bookrunners. Credit Agricole CIB is the co-manager.

Both tranches feature 35% equity clawbacks during the non-call period and 101% poison puts.

Credit ratings for both tranches remain to be determined.

Proceeds will be used to redeem all of the company's outstanding 6 7/8% senior notes due April 15, 2015, to repay in full and terminate its existing term loan and to pay down a portion of its new asset-based revolver.

Quiksilver is an outdoor sports lifestyle company.

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