By Paul A. Harris
St. Louis, March 2 - Express, LLC and Express Finance Corp. priced an upsized $250 million issue of 8¾% eight-year senior notes (B3/B/) at 98.599 to yield 9% on Tuesday, according to an informed source.
The yield printed on top of the price talk.
Bank of America Merrill Lynch, Goldman Sachs & Co. and Morgan Stanley & Co. Inc. were the joint bookrunners for the deal, which was upsized from $200 million.
The notes feature a make-whole call at Treasuries plus 50 basis points until March 1, 2014 and then become callable at a premium.
There is an equity clawback for 35% at 108.75 until March 1, 2013.
Proceeds, together with cash on hand, will be used to prepay all of the term C loans of Express Topco LLC, the indirect parent, and to fund a distribution to equity holders.
Express is a Columbus, Ohio-based specialty retail apparel company.
| Issuers: | Express, LLC and Express Finance Corp.
|
| Amount: | $250 million, increased from $200 million
|
| Maturity: | March 1, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co., Morgan Stanley & Co. Inc.
|
| Coupon: | 8¾%
|
| Price: | 98.599
|
| Yield: | 9%
|
| Spread: | 574 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until March 1, 2014, then callable at a premium
|
| Equity clawback: | 35% at 108.75 until March 1, 2013
|
| Trade date: | March 2
|
| Settlement date: | March 5
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 9% area
|
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