New Issue: American Greetings $200 million 10-year notes yield 7 3/8%

By Paul A. Harris

St. Louis, May 19 - American Greetings Corp. priced a $200 million issue of 10-year senior notes (Ba2/BB+) at par to yield 7 3/8% on Friday, according to a market source.

The yield came in the middle of the 7¼% to 7½% price talk.

UBS Investment Bank and JP Morgan ran the books for the registered notes. KeyBanc Capital Markets was the joint lead manager.

Proceeds will be used to repurchase the company's 6.1% senior notes due Aug. 1, 2028. Prior to the repurchase of the notes, all or a portion of the proceeds may be invested in short-term investments.

The issuer is a Cleveland-based manufacturer of social expression products.

Issuer:	American Greetings Corp.
Amount:	$200 million
Maturity:	June 1, 2016
Security description:	Senior notes
Bookrunners:	UBS Investment Bank, JP Morgan
Joint lead manager:	KeyBanc Capital Markets
Coupon:	7 3/8%
Price:	Par
Yield:	7 3/8%
Spread:	234 bps
Call protection:	From June 1, 2011 at 103.688, then 102.458, 101.229, and par from June 1, 2014 onwards; make-whole call at Treasuries plus 50 basis points
Equity clawback:	Until June 1, 2009 for 35% at 107.375
Trade date:	May 19
Settlement date:	May 24
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	7¼%-7½%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.