NBTY issues call for 9% notes at 102.25, Alphabet 7¾%/8½% notes at 101

By Susanna Moon

Chicago, April 15 – NBTY Inc. called its $650 million principal amount of 9% senior notes due 2018 and the $1 billion of 7¾%/8½% contingent cash pay senior notes due 2017 issued by its parent, Alphabet Holding Co., Inc., according to an 8-K filing with the Securities and Exchange Commission.

The redemption price will be 102.25% of par for the 9% notes and 101% of par for the 7¾%/8½% notes plus accrued interest to but excluding the redemption date of May 16.

The company also plans to repay its senior secured credit facilities.

Funding for the redemptions and paydown will come from proceeds of the company’s $1,075,000,000 principal amount of senior notes due 2021 in a private placement under Rule 144A and Regulation S, according to a company press release.

The company also plans to fund the redemptions and paydown with proceeds of a new $1.4 billion senior secured term loan facility, a £300 million senior secured term loan facility and borrowings under a new $400 million asset-based lending facility and cash on hand, the release noted.

The offering will settle at about the same time as, and is conditioned upon, the closing of the company’s new senior secured credit facilities, the release noted.

NBTY is a Ronkonkoma, N.Y.-based manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

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