Published on 2/4/2013 in the Prospect News High Yield Daily.
New Issue: Vector sells upsized $450 million eight-year secured notes at par to yield 7¾%
By Paul A. Harris
Portland, Ore., Feb. 4 - Vector Group Ltd. priced an upsized $450 million issue of eight-year senior secured notes (Ba3/B+/) at par to yield 7¾% on Monday, according to an informed source.
The yield printed at the tight end of the 7¾% to 8% yield talk.
Jefferies & Co. Inc. was the bookrunner for the deal, which was upsized from $375 million.
Proceeds will be used to refinance the company's 11% senior secured notes due 2015 and for general corporate purposes.
Vector Group is a Miami-based holding company that indirectly owns Liggett Group LLC and Vector Tobacco Inc. and directly owns New Valley LLC.
| Issuer: | Vector Group Ltd.
|
| Amount: | $450 million, increased from $375 million
|
| Maturity: | Feb. 15, 2021
|
| Securities: | Senior secured notes
|
| Bookrunner: | Jefferies & Co. Inc.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2016, then callable at 105.813, 103.875, 101.938, par on and after Feb. 15, 2019
|
| Equity clawback | 35% at 107.75 until Feb. 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 12
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7¾% to 8%
|
| Marketing: | Roadshow
|
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