New Issue: Ainsworth Lumber prices $350 million 7½% five-year notes at par

By Paul A. Harris

Portland, Ore., Nov. 14 - Ainsworth Lumber Co. Ltd. priced a $350 million issue of five-year senior secured notes (B2/B/) at par to yield 7½% on Wednesday, according to an informed source.

The yield printed at the tight end of yield talk that was set in the 7 5/8% area.

Bank of America Merrill Lynch was the bookrunner.

Proceeds, along with proceeds from a rights offering, a standby purchase and cash on the balance sheet, will be used to repurchase and/or redeem the company's existing notes and term loan.

Ainsworth is a Vancouver, B.C.-based manufacturer of engineered wood products.

Issuer:	Ainsworth Lumber Co. Ltd.
Amount:	$350 million
Maturity:	Dec. 15, 2017
Securities:	Senior secured notes
Bookrunner:	Bank of America Merrill Lynch
Co-managers:	BMO Capital Markets Corp., CIBC World Markets Corp., HSBC Securities (USA) Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC
Coupon:	7½%
Price:	Par
Yield:	7½%
Spread:	688 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2014, then callable at 103.75, 101.875, par on and after Dec. 15, 2016
Equity clawback:	40% at 107.5 until Dec. 15, 2014
Change-of-control put:	101%
Trade date:	Nov. 14
Settlement date:	Nov. 27
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	7 5/8% area
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.