New Issue: American Achievement sells $150 million eight-year notes to yield 8¼%

By Paul A. Harris

St. Louis, March 17 - American Achievement Corp. sold $150 million of eight-year senior subordinated notes (B3/B-) Wednesday at par to yield 8¼%, according to an informed source.

Price talk was 8¼% to 8½%.

Goldman Sachs & Co. and Deutsche Bank Securities ran the books for the Rule 144A/Regulation S issue.

Proceeds will be used to help fund the acquisition of American Achievement by a new company organized and managed by Fenway Partners from Castle Harlan Inc.

The issuer is an Austin, Texas-based manufacturer and seller of high school and college class rings and yearbooks.

Issuer:	American Achievement Corp.
Amount:	$150 million
Maturity:	April 1, 2012
Security description:	Senior subordinated notes
Bookrunners:	Goldman Sachs & Co., Deutsche Bank Securities
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	487 basis points
Call features:	Callable after April 1, 2008 at 104.125, 102.063, par on or after April 1, 2010
Equity clawback:	Until April 1, 2007 for 35% at 108.25
Pricing date:	March 17
Settlement date:	March 25
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	8¼%-8½%

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