By Paul A. Harris
Portland, Ore., Feb. 5 - Century Intermediate Holding Co. 2, the parent of American Greetings Corp., priced an upsized $285 million issue of five-year senior PIK toggle notes (B3/B-/) at 99 to yield 10.01% on Wednesday, according to a syndicate source.
The cash coupon is 9¾%. The PIK coupon is 10½%.
The yield came at the wide end of the 9¾% to 10% yield talk. The reoffer price came on top of price talk.
BofA Merrill Lynch, Deutsche Bank Securities Inc., PNC Capital Markets, RBS Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners for the issue, which was upsized from $275 million.
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.
| Issuer: | Century Intermediate Holding Co. 2, the parent of American Greetings Corp.
|
| Face amount: | $285 million, increased from $275 million
|
| Proceeds: | $282 million
|
| Maturity: | Feb. 15, 2019
|
| Securities: | Senior PIK toggle notes
|
| Bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., PNC Capital Markets LLC, RBS Securities Inc., Wells Fargo Securities LLC
|
| Co-managers: | BVA Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc.
|
| Cash coupon: | 9¾%
|
| PIK coupon: | 10½%
|
| Price: | 99
|
| Yield: | 10.01%
|
| First call: | Feb. 15, 2016 at 102
|
| Equity clawback: | 35% at 109.75 until Feb. 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 5
|
| Settlement date: | Feb. 10
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9¾% to 10% with about 1 point of OID
|
| Marketing: | Roadshow
|
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