New Issue: Warnaco Group prices $210 million 10-year notes to yield 8 7/8%

By Paul A. Harris

St. Louis, June 5 - Warnaco Group, Inc. sold $210 million of senior notes due June 15, 2013 (B2/B) at par to yield 8 7/8% Thursday, according to an informed source.

Price talk had been for a yield of 8¾%-9%.

Citigroup and JP Morgan were joint bookrunners for the Rule 144A deal.

Proceeds will be used to refinance the company's floating-rate amortizing second lien notes due 2008.

Warnaco is a New York-based apparel-maker.

Issuer:	Warnaco Group, Inc.
Amount:	$210 million
Maturity:	June 15, 2013
Security description:	Senior notes
Bookrunners:	Citigroup, JP Morgan (joint)
Coupon:	8 7/8%
Price:	Par
Yield:	8 7/8%
Spread:	560 basis points
Call features:	Treasuries + 75 basis points make-whole call until June 15, 2008, then callable at 104.438, 102.958, 101.479, declining to par on June 15, 2011 and thereafter
Equity clawback:	Until June 15, 2006 for 35% at 108.875
Settlement date:	June 12, 2003 (T+5)
Ratings:	Moody's: B2
	Standard & Poor's: B
Rule 144A Cuisp:	934391AE3
Price talk:	8¾%-9%

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