By Paul A. Harris
St. Louis, Jan. 28 - Eye Care Centers of America Inc. sold $152 million of 10-year senior subordinated notes (Caa1/CCC+) at 98.495 with a 10¾% coupon to yield 11%, according to a market source.
Price talk was 10% to 10¼%.
The issue generated $149.7 million of proceeds after the discount.
JP Morgan ran the books for the Rule 144A with registration rights offering.
The company will also obtain a $165 million senior secured term loan B and a $25 million senior secured revolving credit facility.
Proceeds will be used to help fund Moulin International's and Golden Gate Capital's acquisition of Eye Care Centers from Thomas H. Lee.
Eye Care Centers is a San Antonio, Texas-based optical retail chain.
| Issuer: | Eye Care Centers of America Inc.
|
| Face amount: | $152 million
|
| Proceeds: | $149.7 million
|
| Maturity: | Feb. 15, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | JP Morgan
|
| Co-managers: | Banc of America Securities, Merrill Lynch & Co.
|
| Coupon: | 10¾%
|
| Price: | 98.495
|
| Yield: | 11%
|
| Spread: | 685 basis points
|
| Call features: | Callable after Feb. 15, 2010 at 105.375, 103.583, 101.792 and par on and after Feb. 15, 2013
|
| Equity clawback: | Until Feb. 15, 2008 for 35% at 110.75
|
| Trade date: | Jan. 28
|
| Settlement date: | Feb. 4
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 10%-10¼%
|
|
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