Harland Clarke’s $500 million add-on to 8 3/8% notes due 2022 talked at 104.75; pricing Tuesday

By Paul Deckelman

New York, Oct. 27 – Harland Clarke Holdings Corp.’s planned $500 million add-on to its existing 8 3/8% senior secured notes due Aug. 15, 2022 is likely to price on Tuesday at 104.75, high-yield syndicate sources said Friday.

The sources said that order books on the deal would close at 5 p.m. ET on Monday, with the pricing expected the following day.

The Rule 144A and Regulation S for life deal will come to market via joint bookrunners Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Jefferies LLC, Macquarie Capital and Wells Fargo Securities LLC.

Fifth Third Bank, Regions Securities LLC and, Eagle Hill will be the co-managers on the offering.

The add-on tranche will have the same features as the original $350 million deal that priced back on Feb. 2, 2017 – it will become callable on Feb. 15, 2019 at 104.188, have a 35% equity clawback at 108.375 until Feb. 15, 2019 and a 101% poison put.

The Rule 144A tack-on notes will become immediately fungible with the existing Rule 144A notes. The Regulation S tack-on notes will become fungible with the existing Regulation S notes at the conclusion of a 40-day restriction period.

Harland Clarke, a San Antonio-based provider of media delivery, payment solutions and marketing services, plans to use the add-on proceeds to refinance its existing tranche B-5 term loan and tranche B-6 term loan and pay the outstanding borrowings under its ABL facility.

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