Harland Clarke sets roadshow for $865 million two-part notes offer

By Paul A. Harris

Portland, Ore., Jan. 17 - Harland Clarke Holdings Corp. plans to start a roadshow on Wednesday for an $865 million two-part offering of high yield notes, according to a syndicate source.

The offer includes a $275 million tranche of six-year senior secured notes (B1/B+), which become callable in three years at par plus 50% of the coupon.

The San Antonio-based company is also offering $590 million of seven-year senior unsecured notes (Caa1/B-), which become callable in three years at par plus 75% of the coupon.

Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., PNC Capital Markets LLC and Union Bank are the joint bookrunners for the Rule 144A and Regulation S for life offer.

The notes in both tranches feature three-year 35% equity clawbacks and 101% poison puts.

Proceeds will be used to help fund the acquisition of Valassis and to refinance debt.

Harland Clarke is a provider of payment, marketing and security services.

Valassis is a Livonia, Mich.-based provider of media solutions.

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