Published on 10/17/2002 in the Prospect News High Yield Daily.
New Issue: Brand Services $35 million mezzanine tranche yields 13%
By Paul A. Harris
St. Louis, Mo., Oct. 17 - Brand Intermediate Holdings, Inc. priced a mezzanine tranche of $35 million of senior subordinated notes due Oct. 15, 2013 on Wednesday at par to yield 13%, a syndicate source informed Prospect News on Thursday.
Credit Suisse First Boston and JP Morgan were joint bookrunners.
The notes have a 13% PIK coupon until 2007 and are cash-pay after that to the extent of the restricted payment availability in high-yield and credit facility covenants. The notes were priced with warrants for 2.5% of the equity of Brand Holdings, LLC. The warrants are private placement and have registration rights after an IPO.
Proceeds will be used to help fund the acquisition of Brand Services by JPMorgan Partners from DLJ Merchant Banking, including a tender for $130 million 10¼% senior notes due 2008.
The issuer is a St. Louis, Mo.-based scaffolding services company.
| Issuer: | Brand Intermediate Holdings, Inc.
|
| Amount: | $35 million
|
| Maturity: | Oct. 15, 2013 |
|
| Type: | Senior subordinated notes
|
| Bookrunners: | Credit Suisse First Boston, JP Morgan (joint)
|
| Coupon: | 13% PIK until 2007, cash pay after that to the extent of restricted payment availability in high yield and credit facility covenants
|
| Warrants: | 2.5% equity in Brand Holdings, LLC
|
| Price: | Par (including warrant value)
|
| Yield: | 13%
|
| Spread: | | 896 basis points over 4 3/8% Treasury note due August 2012
|
| Call features: | Callable on Oct. 15, 2007 at 106.5, then at 104.333, 102.167, declining to par on Oct. 15, 2010 and thereafter
|
| Equity clawback: | Until Oct. 15, 2005 for up to 35% at 113%
|
| Settlement date: | Oct. 16, 2002
|
| Ratings: | None
|
| Rule 144A Cusip: | 105253AA6
|
|
|
© 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.
