By Paul A. Harris
St. Louis, May 10 - Alliance One International, Inc. priced a downsized and restructured $415 million issue of high-yield notes on Tuesday, according to a syndicate source.
Wachovia Securities and Deutsche Bank Securities ran the books for the Rule 144A issues. ING was the co-manager.
The Danville, Va., leaf tobacco dealer priced a $315 million issue of seven-year senior unsecured notes (expected ratings B2/B) at par to yield 11%, on the wide end of the 10¾% to 11% price talk. The issue was downsized from $325 million.
Alliance One International also priced $100 million proceeds of 7.5-year senior subordinated notes (expected ratings B3/B) at 90.00, resulting in a 15.015% yield to maturity. No official price talk had been issued for the subordinated notes, according to the syndicate source.
Proceeds will be used to refinance the existing debt of Dimon Inc. and Standard Commercial Corp. Dimon and Standard Commercial will merge into Alliance One International.
Alliance One postponed a $650 million offering in mid-April, citing market conditions.
Subsequently the company returned with a downsized $450 million offering, electing to go to the bank loan market to raise the $200 million difference.
On Tuesday Alliance One downsized the deal further to $425 million from $450 million.
Finally, at pricing the combined two-part issue was downsized by a further $10 million to $415 million proceeds.
| Issuer: | Alliance One International, Inc.
|
| Amount: | $415 million (decreased from $450 million)
|
| Bookrunners: | Wachovia Securities, Deutsche Bank Securities
|
| Joint lead manager: | ING
|
| Trade date: | May 10
|
| Settlement date: | May 13
|
|
|
| Senior notes
|
| Amount: | $315 million (decreased from $325 million)
|
| Maturity: | May 15, 2012
|
| Security description: | Senior unsecured notes
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 703 basis points
|
| Call features: | Callable after May 15, 2009 at 105.50, 102.75, par on and after May 15, 2011
|
| Equity clawback: | Until May 15, 2008 for up to 35% at 111.0
|
| Expected ratings: | Moody's B2
|
| Standard & Poor's: B
|
| Price talk: | 10¾%-11%
|
|
|
| Subordinated tranche
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| Proceeds: | $100 million
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| Maturity: | Nov. 15, 2012 (7.5 years)
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| Security description: | Senior subordinated notes
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| Coupon: | 12¾%
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| Price: | 90.00
|
| Yield: | 15.015%
|
| Spread: | 1,105 basis points
|
| Call features: | Callable after May 15, 2009 at 106.375, 103.188, par on and after May 15, 2011
|
| Equity clawback: | Until May 15, 2008 for up to 35% at 112.75
|
| Expected ratings: | Moody's: B3
|
| Standard & Poor's: B
|
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