By Paul A. Harris
St. Louis, Jan. 9 - Elizabeth Arden Inc. upsized its issue of 10-year senior subordinated notes (B3/B-) to $225 million from the originally announced $150 million, according to revised terms.
The deal, which matures Jan. 15, 2014, priced Thursday at par to yield 7¾%, or 350 basis points over Treasuries. Price talk was 8%-8¼%.
Credit Suisse First Boston and Morgan Stanley & Co. were joint bookrunners on the Rule 144A deal. CIBC World Markets was co-manager.
Market sources originally reported Thursday that the offering had been upsized to $200 million.
The New York City-based fragrance and beauty products company plans to use proceeds 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. A market source said the additional proceeds from the upsized sale will be used to redeem additional 10 3/8% notes.
| Issuer: | Elizabeth Arden Inc.
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| Amount: | $225 million (increased from $150 million)
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| Maturity: | Jan. 15, 2014
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| Security description: | Senior subordinated notes
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| Bookrunners: | Credit Suisse First Boston, Morgan Stanley & Co.
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| Co-manager: | CIBC World Markets
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| Coupon: | 7¾%
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| Price: | Par
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| Yield: | 7¾%
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| Spread: | 350 basis points over the 4¼% Treasuries due November 2013
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| Call features: | Callable after Jan. 15, 2009 at 103.875, 102.583, 101.292, par on Jan. 15, 2012 and thereafter
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| Equity clawback: | Until Jan. 15, 2007 at 107.75 for up to 40%
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| Settlement date: | Jan. 13 (T+3)
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| Ratings: | Moody's: B3
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| Standard & Poor's: B-
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| Rule 144A Cusip: | 28660GAB2
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