By Paul A. Harris
Portland, Ore., June 23 - Harbinger Group Inc. priced a $150 million add-on to its 10 5/8% first-priority senior secured noted due Nov. 15, 2015 (Caa1) at 101 to yield 10.259% on Thursday, according to an informed source.
The reoffer price and yield came on top of price talk.
Credit Suisse Securities (USA) LLC was the bookrunner.
Proceeds will be used for working capital by Harbinger and its subsidiaries and for general corporate purposes, including the financing of future acquisitions and investments.
The original $350 million issue priced at 98.587 to yield 11% on Nov. 5, 2010.
Harbinger Group is a diversified holding company based in New York. The company's principal operations are conducted through subsidiaries that offer life insurance and annuity products and branded consumer products.
| Issuer: | Harbinger Group Inc.
|
| Face amount: | $150 million
|
| Proceeds: | $151.5 million
|
| Maturity: | Nov. 15, 2015
|
| Security description: | Add-on to 10 5/8% senior secured notes
|
| Bookrunner: | Credit Suisse Securities (USA) LLC
|
| Coupon: | 10 5/8%
|
| Price: | 101
|
| Yield: | 10.259%
|
| Spread: | 907 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: | June 23
|
| Settlement date: | June 28 with accrued interest
|
| Rating: | Moody's: Caa1
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 101 to yield 10.259%
|
| Marketing: | Quick to market
|
| Original issue: | $350 million issue priced at 98.587 to yield 11% on Nov. 5, 2010
|
| Total issue size: | $500 million
|
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