By Paul A. Harris
St. Louis, June 1 - Interface, Inc. priced a $150 million issue of 11 3/8% senior secured notes due Nov. 1, 2013 (B1/BB-/) at 96.301 to yield 12½% on Monday, according to an informed source.
The yield was printed on top of the 12½% area price talk.
Banc of America Securities LLC, Citigroup Global Markets Inc. and Wachovia Securities LLC were joint bookrunners. BB&T Capital Markets was a co-manager.
The notes are secured by a second lien on substantially all of the issuer's tangible and intangible assets, as well as a pledge of stock of subsidiaries, secured on a second-lien basis by the same assets that secure the ABL revolver. The notes are also guaranteed by each of the company's material U.S. subsidiaries.
Proceeds will be used to fund the tender for the Atlanta-based floor covering company's 10 3/8% senior notes due 2010.
| Issuer: | Interface, Inc.
|
| Face amount: | $150 million
|
| Proceeds: | $144.452 million (approximate)
|
| Maturity: | Nov. 1, 2013
|
| Security description: | Senior secured notes
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., Wachovia Securities LLC
|
| Co-manager: | BB&T Capital Markets
|
| Coupon: | 11 3/8%
|
| Price: | 96.301
|
| Yield: | 12½%
|
| Spread: | 1,017 bps
|
| Call protection: | Non-callable, make-whole provision at Treasuries plus 50 bps
|
| Equity clawback: | 35% at 111.375 until May 1, 2012
|
| Trade date: | June 1
|
| Settlement date: | June 5
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 12½% area
|
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