Published on 4/10/2006 in the Prospect News High Yield Daily.
New Issue: Burlington Coat Factory prices downsized, restructured $380 million two-part deal
By Paul A. Harris
St. Louis, April 10 - Burlington Coat Factory Warehouse Corp. priced a downsized, restructured $380 million two-part high-yield notes transaction (expected ratings Caa1/CCC+) on Monday, according to a market source.
The Burlington, N.J., retailer of branded apparel priced a downsized $305 million issue of 11 1/8% eight-year senior notes at 98.070 to yield 11½%. The senior notes priced wide of the 11% area price talk. The tranche was downsized from $375 million.
The company added a $99.309 million tranche of eight-year discount notes that priced at 75.522 to yield 14½%. The issue generated approximately $75 million of proceeds.
Banc of America Securities, Bear Stearns and Wachovia Securities were joint bookrunners for the Rule 144A with registration rights issue.
Proceeds will be used to fund the LBO of the company by Bain Capital Partners LLC.
The overall transaction was downsized to $375 million from $500 million, with $125 million shifted to the term loan.
| Issuer: | Burlington Coat Factory Warehouse Corp.
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| Amount: | $375 million proceeds (approximate) downsized from $500 million
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| Bookrunners: | Banc of America Securities, Bear Stearns, Wachovia Securities
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| Trade date: | April 10
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| Settlement date: | April 13
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| Expected ratings: | Moody's: Caa1
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| Standard & Poor's: CCC+
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|
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| Senior notes
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| Amount: | $305 million (decreased from $375 million)
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| Maturity: | April 15, 2014
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| Coupon: | 11 1/8%
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| Price: | 98.070
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| Yield: | 11½%
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| Spread: | 654 bps
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| Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2010, then callable at 105.563, 102.781, par on and after April 15, 2012
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| Equity clawback: | Until April 15, 2009 for 35% at 111.125
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| Price talk: | 11% area
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| Discount notes
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| Face amount: | $99.309 million
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| Proceeds: | $75 million (approximate)
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| Maturity: | Oct. 15, 2014
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| Price: | 75.522
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| Yield: | 14½%
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| Call features: | Make-whole call at Treasuries plus 75 bps until Oct. 15, 2008, then callable at 114.50, 110.875, 107.25, 103.625, par
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| Equity clawback: | Until Oct. 15, 2009 for 35% at 114.50
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