By Paul A. Harris
St. Louis, Oct. 14 - Doane Pet Care Co. sold $152 million of 10 5/8% 10-year senior subordinated notes (Caa1/B-) at 99.226 on Friday to yield 10¾%, according to a syndicate source.
The yield came at the wide end of the 10½% to 10¾% price talk.
The sale generated $150.82 million of proceeds.
Lehman Brothers ran the books for the Rule 144A/Regulation S with registration rights issue. Harris Nesbitt, SunTrust Robinson Humphrey and NatCity Investments were the co-managers.
Proceeds will be used to help fund the Ontario Teachers' Pension Plan Board's acquisition of the company.
Doane Pet Care is a Brentwood, Tenn., manufacturer of store brand pet food.
| Issuer: | Doane Pet Care Co.
|
| Face amount: | $152 million
|
| Proceeds: | $150.82 million
|
| Maturity: | Nov. 15, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Lehman Brothers
|
| Co-managers: | Harris Nesbitt, SunTrust Robinson Humphrey, NatCity Investments
|
| Coupon: | 10 5/8%
|
| Price: | 99.226
|
| Yield: | 10¾%
|
| Spread: | 625 basis points
|
| Call features: | Callable after Nov. 15, 2010 at 105.313, 103.542, 101.771, then par on and after Nov. 15, 2013
|
| Equity clawback | Until Nov. 15, 2010 for up to 35% at 110.625
|
| Trade date: | Oct. 14
|
| Settlement date: | Oct. 24
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 10½%-10¾%
|
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