Published on 5/6/2011 in the Prospect News High Yield Daily.
New Issue: Heckler & Koch prices €295 million 9½% seven-year notes at 98.75 to yield 9¾%
By Paul A. Harris
Portland, Ore., May 6 - Heckler & Koch GmbH priced a restructured €295 million issue of 9½% seven-year senior secured notes (Caa1/CCC+/) at 98.75 to yield 9¾% on Friday, according to an informed source.
The yield printed on top of price talk.
A planned dollar-denominated tranche was withdrawn.
Citigroup Global Markets ran the books for the deal, the overall size of which was increased slightly from €290 million.
Proceeds will be used to refinance existing operating company and holding company debt.
The issuer is an Oberndorf, Germany-based small-arms maker.
Issuer: | Heckler & Koch GmbH
|
Face amount: | €295 million, increased from €290 million; dollar-denominated notes withdrawn
|
Proceeds: | €291,313,500 (approximate)
|
Maturity: | May 15, 2018
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Securities: | Senior secured notes
|
Bookrunner: | Citigroup Global Markets
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Co-manager: | Close Brothers
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Coupon: | 9½%
|
Price: | 98.75
|
Yield: | 9¾%
|
Spread: | 676 bps
|
Call features: | Callable on May 15, 2014 at 107.125, 104.75, 102.375, par on and after May 15, 2017
|
Trade date: | May 6
|
Settlement date: | May 12
|
Ratings: | Moody's: Caa1
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| Standard & Poor's: CCC+
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 9¾% area
|
Marketing: | Roadshow
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