By Paul A. Harris
Portland, Ore., Feb. 2 – American Greetings Corp. priced an upsized $400 million issue of 7 7/8% eight-year senior notes (Ba3/BB-) at 99.272 to yield 8% on Thursday, according to a market source.
The issue size was increased from $375 million.
The yield printed 25 basis points below the tight end of the 8¼% to 8½% yield talk.
The deal played to $2.8 billion of orders, according to a market source, who added that the top allocation was $10 million; 20 accounts got zero allocations, the source added.
BofA Merrill Lynch, KeyBanc Capital Markets, PNC Capital Markets, Citizens Bank, Wells Fargo Securities LLC, J.P. Morgan Securities LLC and BBVA managed the sale.
Proceeds will be used to fund tender offers for the American Greetings 7 3/8% senior notes due 2021 and the Century Intermediate Holding Co. 9¾%/10½% senior PIK toggle notes due 2019.
American Greetings is a Cleveland-based creator and manufacturer of innovative social expression products.
Century Intermediate Holding is the indirect parent holding company of American Greetings.
| Issuer: | American Greetings Corp.
|
| Amount: | $400 million, increased from $375 million
|
| Proceeds: | $397,088,000
|
| Maturity: | Feb. 15, 2025
|
| Securities: | Senior notes
|
| Managers: | BofA Merrill Lynch, KeyBanc Capital Markets, PNC Capital Markets, Citizens Bank, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, BBVA
|
| Coupon: | 7 7/8%
|
| Price: | 99.272
|
| Yield: | 8%
|
| Call protection: | Three years
|
| Trade date: | Feb. 2
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Roadshow
|
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