New Issue: Harland Clarke sells downsized $235 million 9¾% notes due 2018 at 96 to yield 10.666%

By Paul A. Harris

Portland, Ore., July 17 - Harland Clarke Holdings Corp. priced a downsized $235 million issue of 9¾% six-year senior secured notes (B1/B+/) at 96 to yield 10.666% on Tuesday, according to a syndicate source.

The yield printed 54 basis points beyond the wide end of price talk, which had been set in the 10% area, according to market sources.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., UBS Investment Bank and Natixis Securities were the joint bookrunners for the issue, which was downsized from $250 million.

Proceeds will be used to refinance debt.

Harland Clarke is a San Antonio-based provider of integrated payment, marketing and security services and retail products.

Issuer:	Harland Clarke Holdings Corp.
Amount:	$235 million, decreased from $250 million
Maturity:	Aug. 1, 2018
Securities:	Senior secured notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., UBS Investment Bank, Natixis Securities
Coupon:	9¾%
Price:	96
Yield:	10.666%
Spread:	985 bps
First call:	Aug. 1, 2015 at 104.875
Equity clawback:	35% at 109.75 until Aug. 1, 2015
Trade date:	July 17
Settlement date:	July 24
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	10% area
Marketing:	Quick to market

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