By Paul A. Harris
Portland, Ore., July 28 – Harland Clarke Holdings Corp. priced a downsized $175 million tack-on to its 9¼% senior notes due March 1, 2021 (Caa1/B-) at 101 to yield 9.014% in a quick-to-market transaction on Monday, according to an informed source.
The deal was downsized from $200 million.
The reoffer price came 1.5 points beyond the cheap end of the 102.5 to 103.5 price talk.
Credit Suisse Securities (USA) LLC and BofA Merrill Lynch were the joint bookrunners.
Proceeds will be used to fund a dividend to M&F Worldwide Corp., the parent of Harland Clarke Holdings, a San Antonio-based provider of payment, marketing and security services.
| Issuers: | Harland Clarke Holdings Corp. and Harland Clarke Corp.
|
| Face amount: | $175 million, decreased from $200 million
|
| Proceeds: | $177 million
|
| Maturity: | March 1, 2021
|
| Security description: | Tack-on to 9¼% senior notes due March 1, 2021
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, BofA Merrill Lynch
|
| Coupon: | 9¼%
|
| Price: | 101
|
| Yield: | 9.014%
|
| Spread: | 714 bps
|
| First call: | March 1, 2017 at 106.938
|
| Trade date: | July 28
|
| Settlement date: | July 31 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 102.5 to 103.5
|
| Marketing: | Quick to market
|
| Original issue: | $540 million priced at par on Jan. 27, 2014
|
| Fungibility: | Tack-on notes will be immediately fungible with the original notes
|
| Total issue size: | $715 million
|
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