New Issue: ICON prices $205 million 11 7/8% six-year notes at 99.468 to yield 12%

By Paul A. Harris

St. Louis, Oct. 4 - ICON Health & Fitness, Inc. priced a $205 million issue of 11 7/8% six-year senior secured notes (B2/B-/) at 99.468 to yield 12% on Monday, according to an informed source.

The yield printed at the wide end of the 11¾% to 12% price talk.

The notes were also subject to a covenant modification.

Bank of America Merrill Lynch and Credit Suisse Securities were the joint bookrunners.

Proceeds will be used to repay a portion of the company's ABL revolver, to repay its term loan in full and to redeem all of its 11¼% senior subordinated notes.

The prospective issuer is a Logan, Utah-based health and fitness equipment manufacturer.

Issuer:	ICON Health & Fitness, Inc.
Face amount:	$205 million
Proceeds:	$203,909,000
Maturity:	Oct. 15, 2016
Securities:	Senior secured notes
Bookrunners:	Bank of America Merrill Lynch, Credit Suisse Securities
Coupon:	11 7/8%
Price:	99.468
Yield:	12%
Spread:	1,041 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2013, then callable at 105.938, 102.969, par on and after Oct. 15, 2015
Equity clawback:	35% at 111.875 until Oct. 15, 2013
Change of control put:	101%
Trade date:	Oct. 4
Settlement date:	Oct. 8
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	11¾% to 12%
Marketing:	Roadshow

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