Published on 9/8/2014 in the Prospect News High Yield Daily.
New Issue: Harbinger prices $200 million tap of 7¾% notes due 2022 at par to yield 7.746%
By Paul A. Harris
Portland, Ore., Sept. 8 – Harbinger Group Inc. priced a $200 million tack-on to its 7¾% senior notes due Jan. 15, 2022 (expected Caa2/confirmed CCC+) at par to yield 7.746% on Monday, according to a syndicate source.
The reoffer price came on top of price talk.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies LLC were the joint bookrunners.
The New York-based diversified holding company plans to use the proceeds for working capital and general corporate purposes.
| Issuer: | Harbinger Group Inc.
|
| Amount: | $200 million
|
| Maturity: | Jan. 15, 2022
|
| Security description: | Tack-on to 7¾% senior notes due Jan. 15, 2022
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies LLC
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7.746%
|
| Spread: | 595 bps
|
| First call: | Jan. 15, 2017 at 105.813
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 11 with accrued interest
|
| Ratings: | Moody's: expected Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | Par
|
| Marketing: | Quick to market
|
| Original issue: | $200 million priced at par on Jan. 15, 2014
|
| Fungibility: | Upon registration tack-on notes will be fungible with the original notes
|
| Total issue size: | $400 million
|
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