New Issue: Affinity Group prices $333 million 11½% six-year notes to yield 12%

By Paul A. Harris

St. Louis, Nov. 15 - Affinity Group, Inc. priced a $333 million issue of 11½% six-year senior secured notes (B3/B-/) at 97.902 to yield 12% on Monday, according to an informed source.

The yield printed on top of yield talk, and the reoffer price came in line with discount talk of about 2 points.

Jefferies & Co. ran the books.

Proceeds will be used to repay and terminate the existing senior secured credit facility, as well as to repay all outstanding debt under, but not terminate, the Camping World revolver, to repay the 9% senior subordinated notes due 2012 and to repay the 10 7/8% senior notes due 2012.

Affinity is a Ventura, Calif.-based direct marketer, specialty retailer and publisher targeting recreational vehicle owners and outdoor enthusiasts.

Issuer:	Affinity Group, Inc.
Face amount:	$333 million
Proceeds:	$326 million (approximate)
Maturity:	Dec. 1, 2016
Securities:	Senior secured notes
Bookrunner:	Jefferies & Co.
Joint lead manager:	Moelis & Co.
Coupon:	11½%
Price:	97.902
Yield:	12%
Call features:	Make-whole at Treasuries plus 50 bps until Dec. 1, 2013, then callable at 108.625, 104.313, par on and after Dec. 1, 2015
Equity clawback	35% at 111.50 until to Dec. 1, 2013
Change-of-control put:	101%
Trade date:	Nov. 15
Settlement date:	Nov. 30
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	12% area yield, including about including about 2 points OID
Marketing:	Roadshow

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.