New Issue: Harbinger sells upsized $350 million 10 5/8% five-year notes at 98.587 to yield 11%

By Paul A. Harris

St. Louis, Nov. 5 - Harbinger Group Inc. priced an upsized $350 million issue of 10 5/8% five-year senior secured notes (Caa1) at 98.587 to yield 11% on Friday, according to an informed source.

The yield printed on top of the price talk.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. were the joint bookrunners for the issue, which was upsized from $325 million.

The New York-based holding company plans to use the proceeds for general corporate purposes, which may include acquisitions and other investments.

Issuer:	Harbinger Group Inc.
Face amount:	$350 million, increased from $325 million
Proceeds:	$345,055,000
Maturity:	Nov. 15, 2015
Security description:	Senior secured notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Goldman Sachs & Co.
Coupon:	10 5/8%
Price:	98.587
Yield:	11%
Spread:	997 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 15, 2013, then callable at 105.313, 102.656 on Nov. 15, 2013, par on and after Nov. 15, 2014
Equity clawback:	35% at 110.625 until Nov. 15, 2013
Trade date:	Nov. 5
Settlement date:	Nov. 15
Rating:	Moody's: Caa1
Distribution:	Rule 144A and Regulation S
Price talk:	11% area
Marketing:	Roadshow

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