Published on 11/23/2010 in the Prospect News High Yield Daily.
New Issue: American Reprographics sells downsized $200 million 10½% notes at 97.824 to yield 11%
By Paul A. Harris
St. Louis, Nov. 23 - American Reprographics Co. priced a downsized $200 million issue of 10½% six-year senior notes (B1/BB-/) at 97.824 to yield 11% on Tuesday, according to an informed source.
The coupon and yield came on top of price talk.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities were the joint bookrunners for the deal, which was downsized from $220 million.
In a restructuring of the deal, the maturity of the bonds was decreased to six years from eight years. Call protection was decreased to three years from four years. There were also covenant changes.
The Walnut Creek, Calif.-based provider of business-to-business document management will use the proceeds to repay and retire its existing senior secured credit facility, to pay swap termination costs and for general corporate purposes.
Issuer: | American Reprographics Co.
|
Face amount: | $200 million, decreased from $220 million
|
Proceeds: | $195,648,000
|
Maturity: | Dec. 15, 2016 (Maturity decreased from eight years)
|
Securities: | Senior notes
|
Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities
|
Co-manager: | Citigroup Global Markets Inc.
|
Coupon: | 10½%
|
Price: | 97.824
|
Yield: | 11%
|
Spread: | 893 bps
|
Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2013, then callable at 105.25, 102.625, par on and after Dec. 15, 2015 (Call protection decreased from four years)
|
Equity clawback: | 35% at 110.50 until Dec. 15, 2013
|
Trade date: | Nov. 23
|
Settlement date: | Dec. 1
|
Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
Distribution: | Rule 144A with registration rights and Regulation S
|
Price talk: | 10½% coupon to yield 11%
|
© 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.