South Africa's Edcon raises price talk on all three tranches of €1.83 billion note offering

By Paul A. Harris

St. Louis, June 7 - Edgars Consolidated Stores (Edcon) raised price talk on all three tranches of its €1.83 billion note offering on Thursday, according to a market source.

The South African clothing retailer raised talk on its proposed €1.18 billion tranche of seven-year senior secured floating-rate notes (B2/B+) to Euribor plus 275 to 300 basis points from the 275 bps area. The secured notes come with two years of call protection.

Edcon also raised talk on €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 now talked to price with a yield in the 8 1/8% to 8 3/8% range, from the previous 8 1/8% area price talk.

Meanwhile talk on a tranche of unsecured floating-rate notes, non-callable for two years, was raised to Euribor plus 450 to 475 bps from the 425 bps area.

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

Pricing is set for Friday.

Barclays Capital and Credit Suisse have the physical books for the Rule 144A for life and Regulation S notes. Deutsche Bank Securities is the joint bookrunner. ABN Amro is the co-manager.

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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