By Paul A. Harris
St. Louis, March 3 - True Temper Sports Inc. sold $125 million of 7.5-year senior subordinated notes (B3/B-) Wednesday at par to yield 8 3/8%, according to an informed source.
Price talk was 8½% to 8¾%.
Credit Suisse First Boston ran the books on the Rule 144A issue. The co-manager was Goldman, Sachs & Co.
Proceeds will be used to help support the leveraged buyout by management and Gilbert Global Equity Partners from Cornerstone Equity Investors, including the repayment of a $14.2 million bank loan, $106.1 million of 10 7/8% senior subordinated notes, and $82.8 million of preferreds.
The Memphis, Tenn., company manufactures sporting goods products.
| Issuer: | True Temper Sports Inc.
|
| Amount: | $125 million
|
| Maturity: | Sept. 15, 2011
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Credit Suisse First Boston
|
| Co-manager: | Goldman, Sachs & Co.
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Spread: | 468 basis points
|
| Call features: | Callable after March 15, 2008 at 104.188, 102.094, par on March 15, 2010 and thereafter
|
| Equity clawback: | Until March 15, 2007 at 108.375 for up to 35%
|
| Pricing date: | March 3
|
| Settlement date: | March 15
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 8½%-8¾%
|
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