By Paul A. Harris
Portland, Ore., May 15 - Harland Clarke Holdings Corp. priced a $50 million tack-on to its 9¾% senior secured notes due Aug. 1, 2018 (current ratings B1/B+/) at 109 on Wednesday, according to an informed source.
The tack-on notes have a 7.22% yield to worst.
Credit Suisse Securities (USA) LLC was the bookrunner.
Proceeds will be used for general corporate purposes, including the redemption of a portion of the company's 9½% senior notes due 2015.
Harland Clarke is a San Antonio-based provider of integrated payment, marketing and security services and retail products.
| Issuer: | Harland Clarke Holdings Corp.
|
| Amount: | $50 million
|
| Maturity: | Aug. 1, 2018
|
| Security description: | Add-on to 9¾% senior secured notes due Aug. 1, 2018
|
| Bookrunner: | Credit Suisse
|
| Coupon: | 9¾%
|
| Price: | 109
|
| Yield to worst: | 7.22%
|
| Spread: | 656 bps
|
| First call: | Aug. 1, 2015 at 104.875
|
| Equity clawback: | 35% at 109.75 until Aug. 1, 2015
|
| Trade date: | May 15
|
| Settlement date: | May 20
|
| Existing ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
| Original issue: | $235 million issue priced at 96 to yield 10.666% on July 17, 2012
|
| Fungibility: | New notes to be immediately fungible with existing notes
|
| Total issue size: | $285 million
|
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