By Paul A. Harris
St. Louis, March 2 - Bon-Ton Stores Inc. priced a downsized $510 million issue of eight-year senior notes (B2/B-/CCC+) at par on Thursday to yield 10¼%, according to an informed source.
The yield came 12.5 basis points wide of the 10% area price talk.
Banc of America Securities LLC and Citigroup were joint bookrunners for the notes, which were issued via Rule 144A with registration rights.
Proceeds will be used to help fund the acquisition of Saks Inc.'s Northern Department Store Group.
The issue was downsized from $525 million.
Bon-Ton Stores is a York, Pa., regional department store chain.
| Issuer: | Bon-Ton Stores Inc.
|
| Amount: | $510 million (decreased from $525 million)
|
| Maturity: | March 15, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC, Citigroup
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Spread: | 555 basis points
|
| Call features: | Callable after March 15, 2010 at 105.125, 102.563, par on and after March 15, 2012
|
| Equity clawback: | Until March 15, 2009 for 35% at 110.25
|
| Trade date: | March 2
|
| Settlement date: | March 6
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Fitch: CCC+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 10% area
|
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