New Issue: Deluxe sells $200 million eight-year notes to yield 7 3/8%

By Paul A. Harris

St. Louis, May 9 - Deluxe Corp. priced a $200 million issue of eight-year senior notes (Ba2/BB-) at par to yield 7 3/8% on Wednesday, according to an informed source.

The yield was printed at the tight end of the 7½% area price talk.

JP Morgan and Wachovia Securities were joint bookrunners for the Rule 144A and Regulation S with registration rights issue. BNY Capital Markets, Bank of Tokyo Mitsubishi, Lehman Brothers, NatCity Investments and BNP Paribas were co-managers.

Proceeds, in addition to cash on hand, will be used to repay the company's credit facility, for general corporate purposes and to repay its outstanding 3½% notes upon maturity on Oct. 1, 2007.

Deluxe is a St. Paul, Minn., services provider to businesses.

Issuer:	Deluxe Corp.
Amount:	$200 million
Maturity:	June 1, 2015
Security description:	Senior notes
Bookrunners:	JP Morgan, Wachovia Securities
Co-managers:	BNY Capital Markets, Bank of Tokyo Mitsubishi, Lehman Brothers, NatCity Investments, BNP Paribas
Coupon:	7 3/8%
Price:	Par
Yield:	7 3/8%
Spread:	277 bps
Call features:	Callable on June 1, 2011 at 103.688, 101.844, par on and after June 1, 2013
Equity clawback:	Until June 1, 2010 for 35% at 107.375
Trade date:	May 9
Settlement date:	May 14
Ratings:	Moody's: Ba2
	Standard & Poor's: BB-
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	7½% area

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