By Paul A. Harris
St. Louis, June 9 - Interline Brands, Inc. priced an upsized and restructured $200 million issue of 8 1/8% eight-year senior subordinated notes (B3/B) at 99.283 to yield 8¼% on Friday, according to a syndicate source.
The yield came tight to the 8¼% to 8½% price talk.
The maturity was decreased by two years. The call protection was decreased by one year.
Lehman Brothers and JP Morgan were joint bookrunners for the off-the-shelf offering. Banc of America Securities LLC, SunTrust Robinson Humphrey and Wachovia Securities were co-managers.
The issue was upsized from $175 million while the company's term loan was downsized by $25 million to $230 million.
Proceeds, along with proceeds from the credit facility, will be used to fund the tender for $200 million of the company's 11½% senior subordinated notes due 2011, as well as to repay bank debt and fund the $127.5 million acquisition of American Sanitary Inc.
Interline Brands is a Jacksonville, Fla., distributor and direct marketer of maintenance, repair and operations products.
| Issuer: | Interline Brands, Inc.
|
| Amount: | $200 million (increased from $175 million)
|
| Maturity: | June 15, 2014 (maturity decreased by two years)
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Lehman Brothers, JP Morgan
|
| Co-managers: | Credit Suisse, Banc of America Securities LLC, SunTrust, Wachovia Securities
|
| Coupon: | 8 1/8%
|
| Price: | 99.283
|
| Yield: | 8¼%
|
| Spread: | 328 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 15, 2010, then callable beginning at 104.063, 102.031, par on and after June 15, 2012 (call protection decreased by one year)
|
| Equity clawback: | Until June 15, 2009 for 35% at 108.125
|
| Trade date: | June 9
|
| Settlement date: | June 23
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | SEC registered
|
| Price talk: | 8¼% to 8½%
|
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