By Paul A. Harris
Portland, Ore., March 9 - Deluxe Corp. priced a restructured $200 million issue of eight-year senior notes (Ba2/BB-/) at par to yield 7% on Wednesday, according to a market source.
The yield printed at the tight end of the 7% to 7¼% price talk.
The maturity of the notes was reduced to eight years from 10 years, while call protection was decreased to four years from five years.
J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners for the quick-to-market deal.
Proceeds, along with cash drawn from the company's revolving credit facility, will be used to repurchase its 5% senior notes due 2012.
Deluxe is a St. Paul, Minn.-based provider of printed checks and deposit slips for financial institutions and printed products for small businesses.
| Issuer: | Deluxe Corp.
|
| Amount: | $200 million
|
| Maturity: | March 15, 2019 (Maturity decreased to eight years from 10 years)
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC
|
| Co-managers: | Bank of Tokyo-Mitsubishi UFJ, Fifth Third Bank, U.S. Bancorp Investments
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 391 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until March 15, 2015, then callable at a premium (Call protection decreased to four years from five years)
|
| Trade date: | March 9
|
| Settlement date: | March 15
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7% to 7¼%
|
| Marketing: | Quick to market
|
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