Cabinetworks talks $550 million eight-year notes at 6 3/8% area yield; pricing Thursday

By Paul A. Harris

Portland, Ore., May 5 – Victors Merger Corp. talked a $550 million offering of eight-year senior notes (Caa1/CCC+) to yield in the 6 3/8% area, according to a syndicate source.

The deal is in the market to support the buyout of ACProducts Holdings, Inc. (Cabinetworks).

Books close at 11 a.m. ET on Thursday.

BofA Securities Inc. is the left bookrunner. Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, KKR Capital Markets LLC, BMO Capital Markets Corp., Jefferies LLC and RBC Capital Markets LLC are the joint bookrunners.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon. The notes feature a three-year 40% equity clawback at par plus the full coupon and a 101% poison put.

Proceeds plus an equity investment and new credit facilities will be used to support the acquisition of ACProducts Holdings by Platinum Equity Advisors, LLC.

Cabinetworks is a cabinetry manufacturer with administrative offices in Ann Arbor, Mich., Waconia, Minn., and The Colony, Tex.

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