By Paul A. Harris
St. Louis, July 14 - Quiksilver, Inc., priced an upsized $400 million issue of senior notes due April 15, 2015 (B1/BB-) at par on Thursday to yield 6 7/8%, according to a syndicate source.
The notes came tight to the 7% area price talk.
JP Morgan ran the books for the Rule 144A/Regulation S issue. Banc of America Securities and SG Corporate & Investment Banking were joint lead managers.
The Huntington Beach, Calif.-based casual clothing company will use proceeds, along with new bank debt, to help finance the acquisition of Skis Rossignol SA and to repay existing debt. The proceeds will be placed in an escrow account pending the successful tender of at least 80% of Rossignol's shares.
The issue was upsized from $350 million.
| Issuer: | Quiksilver, Inc.
|
| Amount: | $400 million (increased from $350 million)
|
| Maturity: | April 15, 2015
|
| Security description: | Senior notes
|
| Bookrunner: | JP Morgan
|
| Joint lead managers: | Banc of America Securities, SG Corporate & Investment Banking
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 271 basis points
|
| Call features: | Callable after five years at 103.437, 102.292, 101.146, declining to par in the eighth year and after
|
| Equity clawback: | For three years for 35% at 106.875
|
| Trade date: | July 14
|
| Settlement date: | July 22
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Price talk: | 7% area
|
|
|
© 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.
