By Paul A. Harris
Portland, Ore., May 6 - Gibson Brands, Inc. priced a $150 million add-on to its 8 7/8% senior secured notes due Aug. 1, 2018 (B3/B-/) at 104.25 on Tuesday, according to an informed source.
The execution rendered a 7.36% yield to worst and a 7.67% yield to maturity.
The reoffer price came in the middle of the 104 to 104.5 price talk.
Jefferies LLC was the bookrunner.
Proceeds will be used to fund the acquisition of WOOX Innovations Ltd., the consumer electronics division of Royal Phillips Electronics.
Gibson Brands is a Nashville, Tenn.-based designer, manufacturer, marketer and distributor of premium musical instruments, audio equipment and related accessories.
| Issuer: | Gibson Brands, Inc.
|
| Face amount: | $150 million
|
| Proceeds: | $156 million
|
| Maturity: | Aug. 1, 2018
|
| Security description: | Add-on to senior secured notes
|
| Bookrunner: | Jefferies LLC
|
| Coupon: | 8 7/8%
|
| Price: | 104.25
|
| Yield to worst: | 7.36%
|
| Yield to maturity: | 7.67%
|
| First call: | Feb. 1, 2016 at 106.656
|
| Equity clawback: | 35% at 108.875 until Feb. 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | May 6
|
| Settlement date: | May 13 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 104 to 104.5
|
| Marketing: | Roadshow
|
| Original issue: | $225 million priced at par on July 24, 2013
|
| Fungibility: | Add-on notes will be fungible with the original notes at the close of the acquisition and release from escrow
|
| Total issue size: | $375 million
|
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