Abercrombie & Fitch talks $300 million five-year secured notes to yield 8¾%-9%; pricing Thursday

By Paul A. Harris

Portland, Ore., June 18 – Abercrombie & Fitch Management Co. talked its $300 million offering of five-year senior secured notes (Ba2/BB-) to yield 8¾% to 9%, according to market sources.

Official talk comes tight to initial guidance in the 9% area, a trader said.

Books close at noon ET on Thursday, and the deal is set to price thereafter.

Wells Fargo Securities LLC is the left bookrunner. J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 50% of the coupon.

The New Albany, Ohio-based retailer, which is focused on casual wear, plans to use the proceeds to refinance its term loan B, to pay down its revolving credit facility and for general corporate purposes.

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