American Greetings to sell $275 million five-year PIK toggle notes

By Paul A. Harris

Portland, Ore., Feb. 4 - Century Intermediate Holding Co. 2, the parent of American Greetings Corp., plans to participate in a New York group meeting and an investor call which are both set to get underway at 12:30 p.m. ET on Wednesday, according to market sources.

Under discussion will be Century's $275 million offering of five-year senior PIK toggle notes (expected ratings B3/B-).

BofA Merrill Lynch, Deutsche Bank Securities Inc., PNC Capital Markets, RBS Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.

BBVA, Mitsubishi UFJ, Scotia Capital and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A and Regulation S for life notes become callable after two years at 102.

Proceeds, together with cash on hand and/or a draw on the revolver of up to $50 million, will be used to fund the redemption of Koch Investment's preferred equity interest in Century Intermediate Holding and to help fund the construction of American Greetings' new world headquarters.

American Greetings is a Cleveland-based greeting card company.

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