American Achievement's $365 million 5.5-year notes talked with 11% area yield, to price Thursday

By Paul A. Harris

St. Louis, Oct. 20 - American Achievement Corp. talked its $365 million offering of 5.5-year senior secured notes (B3/B) with an 11% area yield, an informed source said on Wednesday.

The deal is set to price on Thursday morning.

Goldman Sachs & Co. is the left lead bookrunner for the Rule 144A and Regulation S for life notes. UBS Investment Bank is the joint bookrunner.

The notes come with three years of call protection.

Proceeds, along with proceeds from a new revolver and from preferred stock to be issued by the company's indirect parent, American Achievement Group Holding Corp., will be used to repay American Achievement's existing senior secured credit facility, as well as to refinance its 8¼% senior subordinated notes due April 1, 2012, AAC Group Holding Corp.'s 10¼% senior discount notes due Oct. 1, 2012 and American Achievement Group Holding's 12¾% senior PIK notes due Oct. 1, 2012.

Proceeds will also be used to redeem or repurchase all American Achievement Intermediate Holding Corp. series A preferred stock and American Achievement Group Holding's preferred stock.

American Achievement is an Austin, Texas-based provider of class rings, yearbooks, graduation products and affinity jewelry.

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