New Issue: IKON Office Solutions $225 million 10-year notes yield 7¾%

By Paul A. Harris

St. Louis, Sept. 16 - IKON Office Solutions, Inc. priced a $225 million issue of 10-year senior notes (Ba2/BB) at par on Friday to yield 7¾%, according to a market source.

The yield came on top of the 7¾% area price talk.

Wachovia Securities and Lehman Brothers were bookrunners for the Rule 144A/Regulation S issue. The co-managers were ABN Amro, PNC Capital Markets, The Royal Bank of Scotland and Scotia Capital.

Proceeds will be used to call the company's 5% convertible notes due 2008.

IKON is a Malvern, Pa.-based document management systems and solutions provider.

Issuer:	IKON Office Solutions, Inc.
Amount:	$225 million
Maturity:	Sept. 15, 2015
Security description:	Senior notes
Bookrunners:	Wachovia Securities, Lehman Brothers
Co-managers:	ABN Amro, PNC Capital Markets, The Royal Bank of Scotland, Scotia Capital
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	349 basis points
Call features:	Callable after Sept. 15, 2010 at 103.875, 102.5833, 101.2917, par on and after Sept. 15, 2013
Equity clawback:	Until Sept. 15, 2008 for 35% at 107.75
Trade date:	Sept. 16
Settlement date:	Sept. 21
Ratings:	Moody's: Ba2
	Standard & Poor's: BB
Price talk:	7¾% area

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