By Paul A. Harris
Portland, Ore., July 26 - Alliance One International, Inc. priced a downsized $735 million issue of 9 7/8% eight-year senior secured second-lien notes (Caa1/B-/) at 98.00 to yield 10¼% on Friday, according to a market source.
The deal was downsized from $790 million.
The yield printed 87.5 basis points beyond the wide end of yield talk that was set in the 9¼% area.
Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, ICBC, ING, Natixis Securities and Standard Chartered Bank managed the sale.
The Morrisville, N.C.-based leaf tobacco merchant plans to use the proceeds to fund the redemption of $635 million of its 10% senior notes due 2016 and a tender offer for any and all of its $115 million 5½% convertible senior subordinated notes due 2014.
| Issuer: | Alliance One International, Inc.
|
| Face amount: | $735 million, decreased from $790 million
|
| Proceeds: | $720 million
|
| Maturity: | July 15, 2021
|
| Securities: | Senior secured second-lien notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, ICBC, ING, Natixis Securities, Standard Chartered Bank
|
| Coupon: | 9 7/8%
|
| Price: | 98.00
|
| Yield: | 10¼%
|
| Spread: | 802 bps
|
| Call protection: | Four years
|
| Trade date: | July 26
|
| Settlement date: | Aug. 1
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9¼% area
|
| Marketing: | Roadshow
|
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