New Issue: Head upsized €135 million 10-year notes yield 8½%

By Paul A. Harris

St. Louis, Jan. 26 - HTM Sport/Freizeitgerte AG (Head NV) priced an upsized €135 million offering of 10-year senior notes (B2/B) Monday at par to yield 8½%, a market source said.

The issue, which matures Feb. 1, 2014, was increased from a planned €125 million.

Price talk was 8½%-8¾%.

Citigroup ran the books on the Rule 144A/Regulation S issue.

Proceeds will be used to redeem Head Holding Unternehmensbeteiligung GmbH's 10% senior notes due 2006, to repay debt and for general corporate purposes.

The issuer is a Rotterdam-based manufacturer and marketer of sports equipment.

Issuer:	HTM Sport/Freizeitgerte AG (Head NV)
Amount:	€135 million (increased from €125 million)
Maturity:	Feb. 1, 2014
Security description:	Senior notes
Bookrunner:	Citigroup
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	434 basis points
Call features:	Callable after Feb. 1, 2009 at 104.25, 102.833, 101.417, par on Feb. 1, 2012 and thereafter
Equity clawback:	Until Feb. 1, 2007 for 35% at 108.50
Pricing date:	Jan. 26
Settlement date:	Jan. 29
Ratings:	Moody's: B2
	Standard & Poor's: B
Price talk:	8½%-8¾%

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