By Paul A. Harris
St. Louis, Jan. 8 - Elizabeth Arden Inc. priced an upsized issue of $200 million of 10-year senior subordinated notes (B3/B-) Thursday at par to yield 7¾%, or 350 basis points over Treasuries, a syndicate source said.
The offering, which was increased from $150 million, matures Jan. 15, 2014.
Price talk was 8%-8¼%.
Credit Suisse First Boston and Morgan Stanley were bookrunners on the Rule 144A issue. CIBC World Markets was co-manager.
Proceeds will be used to help fund the tender for $104 million of 11¾% senior secured notes due 2011 and to redeem $70 million (increased from $20 million) of 10 3/8% senior notes due 2007. The market source said the additional proceeds from the upsized sale will be used to redeem additional 10 3/8% notes.
Elizabeth Arden is a New York City-based fragrance and beauty products company.
| Issuer: | Elizabeth Arden Inc.
|
| Amount: | $200 million, increased from $150 million
|
| Maturity: | Jan. 15, 2014
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Credit Suisse First Boston, Morgan Stanley
|
| Co-manager: | CIBC World Markets
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 350 basis points
|
| Call features: | Callable after Jan. 15, 2009 at 103.875, 102.583, 101.292, par on Jan. 15, 2012 and thereafter
|
| Equity clawback: | Until Jan. 15, 2007 for 40% at 107.75
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 8%-8¼%
|
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