New Issue: Sheridan prices $150 million 12½% three-year secured notes at 94 to yield 15.059%

By Paul A. Harris

Portland, Ore., April 8 - The Sheridan Group, Inc. priced a $150 million issue of 12½% three-year senior secured notes (B3/B-/) at 94 to yield 15.059% on Friday, according to an informed source.

The coupon and reoffer price came on top of talk. The yield came in line with yield talk of 15.06%.

Jefferies & Co., Inc. ran the books.

The Hunt Valley, Md.-based print and publishing company plans to use the proceeds to repay its existing 10¼% senior secured notes.

Issuer:	Sheridan Group, Inc.
Face amount:	$150 million
Proceeds:	$141 million
Maturity:	April 15, 2014
Securities:	Senior secured notes
Bookrunner:	Jefferies & Co., Inc.
Coupon:	12½%
Price:	94
Yield:	15.059%
Call features:	Make-whole call at Treasuries plus 50 bps until April 15, 2012, then callable at 106.25, 103.125, par on and after Oct. 15, 2013
Equity clawback:	35% at 112.50 until April 15, 2012
Mandatory redemption:	If certain real property owned by United Litho, Inc. located in Ashburn, Va., is sold on or prior to Dec. 31, 2011, the company will be required to use the net proceeds to redeem the notes at par
Trade date:	April 8
Settlement date:	April 15
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	12½% coupon at 94 to yield 15.06%
Marketing:	Roadshow

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