By Paul A. Harris
St. Louis, Nov. 10 - ACC Group Holding Corp., the parent of American Achievement Corp., sold $131.5 million, or $89.3 million proceeds, of eight-year senior discount notes (Caa1/B-) Wednesday at 67.885 to yield 10¼%, according to an informed source.
The notes come with a zero coupon for the first four years, after which they become cash pay.
Price talk was 10% to 10¼%.
Goldman Sachs & Co. ran the books for the quick-to-market Rule 144A/Regulation S issue.
Proceeds will be distributed to the stockholders of AAC Group Holding Corp. and will also be used to repurchase a portion of the outstanding common stock.
The issuer is an Austin, Texas-based scholastic products company.
| Issuer: | ACC Group Holding Corp. (parent of American Achievement Corp.)
|
| Face amount: | $131.5 million
|
| Proceeds: | $89.269 million
|
| Maturity: | Oct. 1, 2012
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 0% for four years, then cash pay
|
| Price: | 67.885
|
| Yield: | 10¼%
|
| Spread: | 618 basis points
|
| Call features: | Callable after Oct. 1, 2008 at 105.125, 102.563, par on and after Oct. 1, 2010
|
| Pricing date: | Nov. 10
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 10%-10¼%
|
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