By Paul A. Harris
St. Louis, Mo., March 27 - VGR Holding, Inc. priced a $30 million face amount ($25 million proceeds) add-on to its 10% senior secured notes due March 31, 2006 (B3/B) in a drive-by offering Tuesday at 85.2441. Factoring in the commitment fee of 1.7627% of the principal, the yield to maturity is 15¾%, according to a syndicate source.
Jefferies and Co. ran the books on the private placement.
The bonds are guaranteed on a senior unsecured basis by Vector Group, Ltd. and by Liggett Group, Inc. and are secured by all the assets of the company - primarily cash and the shares of the Liggett Group, Vector Tobacco, Inc., and New Valley Corp. - according to the syndicate source.
Proceeds will be used to fund the acquisition of The Medallion Co., Inc.
The tobacco products manufacturer and marketer is based in Miami, Fla.
The original $60 million deal priced March 29, 2001, to yield 10¾%, according to the source who added that the company was then known as BGLS, Inc.
| Issuer: | VGR Holding, Inc.
|
| Face amount: | $30 million
|
| Proceeds: | $25 million
|
| Type: | Add-on to its 10% senior secured notes due March 31, 2006
|
| Bookrunner: | Jefferies & Co.
|
| Coupon: | 10%
|
| Price: | 85.2441
|
| Commitment fee: | 1.7627% of principal
|
| Yield to maturity: | 15¾% (including commitment fee)
|
| Call features: | Callable on May 14, 2003 at 103% of accreted value, at 102% in 2004 and accreted value in 2005
|
| Equity clawback: | Until May 24, 2003 for 35% at 105% of accreted value
|
| Settlement date: | April 11 (T+10)
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
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