Published on 12/18/2012 in the Prospect News High Yield Daily.
New Issue: Hillman prices $65 million tap of 10 7/8% notes due 2018 at 106.5 to yield 8.649%
By Paul A. Harris
Portland, Ore., Dec. 18 - The Hillman Group, Inc. priced a $65 million add-on to its 10 7/8% senior notes due June 1, 2018 (existing ratings B3/CCC+/) at 106.5 to yield 8.649% on Tuesday, according to an informed source.
The reoffer price came at the rich end of the 106 to 106.5 price talk. The yield came at the tight end of the 8.649% to 8.813% yield talk.
Barclays ran the books for the quick-to-market deal, which was upsized from $60 million.
Proceeds will be used to fund the acquisition of H. Paulin & Co. Ltd. and for general corporate purposes.
The issuer is a Cincinnati-based provider of inventory management and in-store merchandising services.
| Issuer: | Hillman Group, Inc.
|
| Face amount: | $65 million, increased from $60 million
|
| Proceeds: | $69.23 million
|
| Maturity: | June 1, 2018
|
| Security description: | Add-on to 10 7/8% senior notes due June 1, 2018
|
| Bookrunner: | Barclays
|
| Coupon: | 10 7/8%
|
| Price: | 106.5
|
| Yield to worst: | 8.649%
|
| Spread: | 789 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
|
| Trade date: | Dec. 18
|
| Settlement date: | Dec. 21 with accrued interest
|
| Expected ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 106 to 106.5
|
| Yield talk: | 8.649% to 8.813%
|
| Marketing: | Quick to market
|
| Original issue: | $150 million issue priced at par in May 2010
|
| Previous add-on: | $50 million priced at 109.25 to yield 9.092% in March 2011
|
| Total issue size: | $265 million
|
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