Bon-Ton talks $300 million eight-year secured notes to yield 8%-8¼%; pricing Thursday

By Paul A. Harris

Portland, Ore., May 16 - Bon-Ton Department Stores, Inc. talked its $300 million offering of eight-year second-lien senior secured notes (Caa1/B-) to yield 8% to 8¼%, according to a syndicate source.

Books close at 3:30 p.m. ET Thursday, and the deal is set to price thereafter.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the joint bookrunners.

Lazard, RBS Securities Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A with registration rights notes become callable in three years at par plus 75% of the coupon. The notes feature a three-year 35% equity clawback and a 101% poison put.

The York, Pa.-based regional department store operator plans to use the proceeds to fund the tender for its 10¼% notes due 2014 and its 10 5/8% notes due 2017.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.