By Paul A. Harris
St. Louis, June 24 - K2 Inc. priced an upsized $200 million of 10-year senior notes (Ba3/BB) at par on Thursday to yield 7 3/8%, according to market sources.
Price talk was 7 3/8% to 7 5/8%.
JP Morgan ran the books for the Rule 144A issue. Banc of America Securities was the co-manager.
Proceeds will be used to help fund the acquisition of Volkl Sports, The Marker Group and Marmot Mountain Ltd. and to repay debt.
The issuer is a Carlsbad, Calif., sporting goods manufacturer.
The issue was upsized from $150 million.
| Issuer: | K2 Inc.
|
| Amount: | $200 million, increased from $150 million
|
| Maturity: | July 1, 2014
|
| Security description: | Senior notes
|
| Bookrunner: | JP Morgan
|
| Co-manager: | Banc of America Securities
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Pricing date: | June 24
|
| Settlement date: | July 1
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Price talk: | 7 3/8%-7 5/8%
|
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