By Paul A. Harris
St. Louis, Sept. 17 - Broder Brothers priced an offering of $175 million of senior notes due Oct. 15, 2010 (B3/B-) at par Wednesday to yield 11¼%, according to a source close to the deal.
Market sources reported Tuesday that price talk had widened to 11¼% from 10¾%-11%.
UBS Investment Bank was bookrunner on the Rule 144A offering. Banc One Capital Markets was co-manager.
Proceeds will be used to help fund the acquisition of Alpha, sponsored by Bain Capital, and to repay Broder and Alpha debt.
The issuer is a Plymouth, Mich.-based distributor of imprintable sportswear and accessories.
| Issuer: | Broder Brothers
|
| Amount: | $175 million
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| Maturity: | Oct. 15, 2010
|
| Security description: | Senior notes
|
| Bookrunner: | UBS Investment Bank
|
| Co-manager: | Banc One Capital Markets
|
| Coupon: | 11¼%
|
| Price: | Par
|
| Yield: | 11¼%
|
| Spread: | 759 basis points
|
| Call features: | Callable on Oct. 15, 2007 at 105.625, then 102.813, declining to par on Oct. 15, 2009 and thereafter
|
| Equity clawback: | Until Oct. 15, 2006 for 35% at 111.25
|
| Settlement date: | Sept. 22 (T+3)
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Rule 144A Cusip: | 112013AA5
|
| Price talk: | 11¼% (increased from 10¾%-11%)
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