Compucom talks $150 million six-year toggle notes at Libor plus 700-725 bps at 98.5

By Paul A. Harris

St. Louis, May 23 - CHR Intermediate Holding Corp., the holding company for Compucom Systems, Inc., set price talk for its $150 million offering of six-year senior floating-rate toggle notes (Caa1/B-) at Libor plus 700 to 725 basis points, with an original issue discount of 98.5, on Wednesday, according to an informed source.

Books are scheduled to close midday Thursday, with the notes pricing shortly thereafter.

Banc of America Securities LLC is the left bookrunner for the Rule 144A for life notes. Citigroup is the joint bookrunner. Jefferies & Co. and PNC Capital Markets are the co-managers.

The notes become callable at par in three months.

In addition the notes feature two 50 bps coupon step-ups after 15 and 27 months.

Credit ratings remain to be determined.

Proceeds will be used to fund a dividend.

The prospective issuer is the holding company and sole stockholder of Compucom Systems, a Dallas-based information technology services provider.

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