New Issue: Invacare prices $175 million 9¾% eight-year notes at 98.642 to yield 10%

By Paul A. Harris

St. Louis, Feb. 7 - Invacare Corp. priced a $175 million issue of 9¾% eight-year senior notes (B2/B-) at 98.642 to yield 10% on Wednesday, according to a market source.

The yield came in the middle of the 10% area price talk.

Banc of America Securities LLC ran the books for the notes, which are being offered via Rule 144A with registration rights and via Regulation S. KeyBank was the joint lead manager. BMO Nesbitt Burns and SunTrust Robinson Humphrey were co-managers.

Proceeds will be used to repay existing debt.

Invacare is an Elyria, Ohio-based manufacturer and distributor of medical equipment used in the home.

Issuer:	Invacare Corp.
Amount:	$175 million
Maturity:	Feb. 15, 2015
Security description:	Senior notes
Bookrunner:	Banc of America Securities LLC
Joint lead manager:	KeyBank
Co-managers:	BMO Nesbitt Burns, SunTrust Robinson Humphrey
Coupon:	9¾%
Price:	98.642
Yield:	10%
Spread:	523 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Feb. 15, 2011, then callable at 104.875, 102.438, par on and after Feb. 15, 2013
Equity clawback:	Until Feb. 15, 2010 for 35% at 109.75
Trade date:	Feb. 7
Settlement date:	Feb. 12
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	10% area

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