New Issue: Gymboree prices $400 million eight-year notes at par to yield 9 1/8%

By Paul A. Harris

St. Louis, Nov. 18 - Giraffe Acquisition Corp., which will be merged with and into Gymboree Corp., priced a $400 million issue of eight-year senior notes (Caa1/B-/) at par to yield 9 1/8% on Thursday, according to an informed source.

The yield printed at the tight end of the 9¼% area price talk.

Morgan Stanley & Co. Inc. and Credit Suisse Securities were the joint bookrunners.

Proceeds will be used to help fund the acquisition of the company by Bain Capital Partners LLC.

Gymboree is a San Francisco-based specialty retailer.

Issuer:	Giraffe Acquisition Corp., to be merged into Gymboree Corp.
Amount:	$400 million
Maturity:	Dec. 1, 2018
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. Inc., Credit Suisse Securities
Coupon:	9 1/8%
Price:	Par
Yield:	9 1/8%
Spread:	670 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 1, 2014, then callable at 104.563, 102.281, par on and after Dec. 1, 2016
Equity clawback:	35% at 109.125 until Dec. 1, 2013
Trade date:	Nov. 18
Settlement date:	Nov. 23
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	9¼% area
Marketing:	Roadshow

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