Quiksilver sets price talk for $500 million two-part notes offering

By Paul A. Harris and Aleesia Forni

Virginia Beach, Va., July 11 - Quiksilver Inc. and QS Wholesale, Inc. have set price talk for their proposed $500 million two-part offering of notes, according to a market source.

The planned $250 million issue of senior secured notes due 2018 is being talked at 8% to 8¼%.

The Rule 144A for life notes will be non-callable for 2.5 years.

Price talk for the $250 million of senior unsecured notes due 2020 is set at 10¼% to 10½%.

The Rule 144A with registration rights notes will be callable in three years at par plus 75% of the coupon.

Books close at 4 p.m. ET on Thursday, and pricing is expected thereafter.

BofA Merrill Lynch is the left bookrunner.

Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.

Credit Agricole CIB is a co-manager.

Both tranches feature a 35% equity clawback during the non-call period and a 101% poison put.

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

Quiksilver is a Huntington Beach, Calif.-based outdoor sports lifestyle company.

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