Published on 11/20/2009 in the Prospect News High Yield Daily.
New Issue: Easton-Bell Sports sells upsized $350 million 9¾% seven-year secured notes to yield 10%
By Paul A. Harris
St. Louis, Nov. 20 - Easton-Bell Sports, Inc. priced a restructured and upsized $350 million issue of 9¾% seven-year senior secured notes (B3/CCC+/) at 98.765 to yield 10% on Friday, according to an informed source.
The yield printed at the tight end of yield talk. The issue price came in line with discount talk of 1 point to 2 points.
J.P. Morgan Securities Inc. and Wells Fargo Securities were joint bookrunners for the deal, which was upsized from $325 million.
Call protection was decreased by one year. The notes will be callable in three years at par plus three-fourths the coupon. Prior to the restructuring, the notes were non-callable for four years.
Proceeds will be used to repay bank debt and to redeem the company's subordinated notes.
Easton-Bell is a Van Nuys, Calif.-based designer, developer and marketer of branded athletic equipment and accessories.
| Issuer: | Easton-Bell Sports, Inc.
|
| Face amount: | $350 million, increased from $325 million
|
| Proceeds: | $345,678,000 (approximate)
|
| Maturity: | Dec. 1, 2016
|
| Securities: | Senior secured notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Wells Fargo Securities
|
| Coupon: | 9¾%
|
| Price: | 98.765
|
| Yield: | 10%
|
| Spread: | 717 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2012, then callable at 107.313, 104.875, 102.438, par on and after Dec. 1, 2015. In addition, during any 12-month period prior to Dec. 1, 2012 the company may redeem up to 10% of the principal at 103.0, plus accrued and unpaid interest. (Call protection decreased to three years from four years)
|
| Equity clawback: | 35% at 109.75 until Dec. 1, 2012
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 20
|
| Settlement date: | Dec. 3
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 10% to 10¼%
|
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