Books filling for Quicksilver's $500 million two-part notes offering; price whisper surfaces

By Paul A. Harris

Portland, Ore., July 10 - Order books are building for Quiksilver, Inc.'s $500 million two-senior notes offering, a trader said on Wednesday morning.

A $250 million tranche of five-year senior secured notes is already oversubscribed, with the book-size at $300 million, the source said, adding that the secured tranche is whispered at 8¼% to 8½%.

The book for the Huntington Beach, Calif.-based outdoor sports lifestyle company's $250 million tranche of senior unsecured notes was half-filled on Wednesday morning, the trader said, adding that the unsecured tranche is whispered with a yield in the 10½% area.

An investor conference call is scheduled to take place at 12:30 p.m. ET Wednesday.

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

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

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.

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