New Issue: Hillman prices $150 million eight-year notes at par to yield 10 7/8%

By Paul A. Harris

St. Louis, May 18 - The Hillman Group, Inc. priced a $150 million issue of eight-year senior notes (B3/CCC+/) at par to yield 10 7/8% on Tuesday, according to an informed source.

The yield printed in the middle of the 10¾% to 11% price talk.

Barclays Capital Inc. and Morgan Stanley & Co. Inc. were the joint bookrunners.

Proceeds will be used to fund the leveraged buyout of the company by Oak Hill Capital and to refinance existing debt.

The Hillman Group is a Cincinnati-based distributor of stock-keeping units and provider of inventory management and in-store merchandising services.

Issuer:	The Hillman Group, Inc.
Amount:	$150 million
Maturity:	June 1, 2018
Securities:	Senior notes
Bookrunners:	Barclays Capital Inc., Morgan Stanley & Co. Inc.
Coupon:	10 7/8%
Price:	Par
Yield:	10 7/8%
Spread:	783 bps
Call features:	Make-whole call at Treasuries plus 50 bps until June 1, 2014, then callable at 105.438, 102.719, par on and after June 1, 2016
Equity clawback:	35% at 110.875 until June 1, 2013
Change-of-control put:	101%
Trade date:	May 18
Settlement date:	May 28
Ratings:	Moody's: B3
	Standard & Poor's: CCC+
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	10¾% to 11%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.