By Paul A. Harris
St. Louis, June 8 - Edgars Consolidated Stores (Edcon) completed a downsized, restructured €1.81 billion notes transaction on Friday, according to a market source.
The South African clothing retailer, issuing via Edcon (Pty.), priced €1.18 billion of seven-year senior secured floating-rate notes (B2/B+) at par to yield three-month Euribor plus 325 basis points.
The senior notes priced on top of twice-revised price talk. Talk had increased from Euribor plus 275 to 300 basis points, after having initially been set at the 275 basis points area.
Meanwhile Edcon Holdings (Pty.) priced a downsized €630 million tranche of eight-year senior unsecured floating-rate notes (Caa1/B-) at par to yield three-month Euribor plus 550 basis points.
The unsecured tranche was downsized from €650 million, and was priced on top of price talk which had also been twice revised. The talk was increased from 450 to 475 basis points, after initially having been set at 425 basis points area.
The overall transaction was downsized from €1.83 billion. A proposed tranche of senior fixed-rate notes was abandoned.
Barclays Capital and Credit Suisse had the physical books for the notes which were issued via Rule 144A for life and Regulation S. Deutsche Bank Securities was the joint bookrunner.
Proceeds will be used to refinance the bridge loan taken out to fund the LBO of the company by Bain Capital.
Edcon is based in Johannesburg.
| Issuer: | Edgars Consolidated Stores (Edcon)
|
| Amount: | €1.81 billion (decreased from €1.83 billion)
|
| Physical bookrunners: | Barclays Capital, Credit Suisse
|
| Joint bookrunner: | Deutsche Bank Securities
|
| Co-manager: | ABN Amro
|
| Trade date: | June 8
|
| Settlement date: | June 15
|
| Distribution: | Rule 144A for life/Regulation S
|
|
|
| Senior secured notes
|
| Issuer: | Edcon (Pty.)
|
| Amount: | €1.18 billion
|
| Maturity: | June 15, 2014
|
| Coupon: | Three-month Euribor plus 325 bps
|
| Price: | Par
|
| Yield: | Three-month Euribor plus 325 bps
|
| Call features: | Callable on June 15, 2008 at 102, 101, par on and after June 15, 2010
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Price talk: | Euribor plus 325 bps (increased from 275 to 300 bps, increased from 275 bps area)
|
|
|
| Senior unsecured notes
|
| Issuer: | Edcon Holdings (Pty.)
|
| Amount: | €630 million (decreased from €650 million)
|
| Maturity: | June 15, 2015
|
| Coupon: | Three-month Euribor plus 550 bps
|
| Price: | Par
|
| Yield: | Three-month Euribor plus 550 bps
|
| Call features: | Callable on June 15, 2009 at 102, 101, par on and after June 15, 2011
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | Euribor plus 550 bps (increased from 450 to 475 bps, increased from 425 bps area)
|
|
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