South Africa's Edcon talks €1.83 billion three-part note offering

By Paul A. Harris

St. Louis, June 6 - Edgars Consolidated Stores (Edcon) set price talk for its €1.83 billion three-part note offering on Wednesday, according to a market source.

The South African clothing retailer talked its proposed €1.18 billion tranche of seven-year senior secured floating-rate notes (B2/B+) at the Euribor plus 275 basis points area. The secured notes come with two years of call protection.

Meanwhile Edcon set price talk for €650 million of senior unsecured notes (Caa1/B-) in two tranches.

A tranche of unsecured fixed-rate notes, with three years of call protection, is talked at the 8 1/8% area.

A tranche of unsecured floating-rate notes, non-callable for two years, is talked at the Euribor plus 425 bps area.

The sizes of the senior unsecured notes tranches remain to be determined.

The roadshow continues Thursday in continental Europe. The notes are expected to price before the end of the week.

Barclays Capital, Credit Suisse and Deutsche Bank Securities are joint bookrunners for the Rule 144A for life and Regulation S note offering.

Proceeds will be used to refinance the bridge loan used to fund the leveraged buyout of the company by Bain Capital.

Edcon is based in Johannesburg.

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