New Issue: Sally Beauty sells $200 million 10-year notes at par to yield 5½%

By Paul A. Harris

Portland, Ore., Oct. 24 - Sally Beauty Holdings, Inc. priced a $200 million issue of 10-year senior notes (Ba2/BB+/) at par to yield 5½% on Thursday, according to a syndicate source.

The yield printed on top of yield talk.

BofA Merrill Lynch was the left bookrunner. J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and RBC Capital Markets were the joint bookrunners.

The Denton, Texas-based specialty retailer and distributor of professional beauty supplies plans to use the proceeds to repay in full the outstanding borrowings under its ABL facility and for general corporate purposes.

Issuers:	Sally Holdings LLC and Sally Capital Inc. (Sally Beauty Holdings, Inc.)
Amount:	$200 million
Maturity:	Nov. 1, 2023
Securities:	Senior notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets
Coupon:	5½%
Price:	Par
Yield:	5½%
Spread:	299 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 1, 2018, then callable at 102.75, 101.833, 100.917, par on and after Nov. 1, 2021
Equity clawback:	35% at 105.5 until Nov. 1, 2016
Change-of-control put:	101%
Trade date:	Oct. 24
Settlement date:	Oct. 29
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	5½% area
Marketing:	Quick to market

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