American Seafoods to price $650.5 million IDS deal mid-May

By Paul A. Harris

St. Louis, April 14 - American Seafoods Group LLC plans to begin marketing $650,450,994 of Income Deposit Securities in late April and price the deal toward the middle of May, according to a syndicate source.

The Seattle-based seafood harvester and processor plans to sell 39,661,646 common shares of stock, which will comprise the equity portion of the IDS units.

The debt portion of the units will be comprised of $263 million of 10-year subordinated notes, which are non-callable for five years. The maturity of the notes may be extended by five years twice, at the company's option, providing leverage is below five times.

Separate from the IDS offering, the company also proposes to sell $33.1 million of notes with the same structure and extension provisions as those that are included in the IDS offering.

CIBC World Markets, Merrill Lynch & Co. and UBS Investment Bank are joint bookrunners for the registered deal. Credit Suisse First Boston, RBC Capital Markets, Legg Mason, KeyBanc Capital Markets, SunTrust Robinson Humphrey, Piper Jaffray, Wells Fargo Securities LLC, Scotia Capital and Morgan Joseph are co-managers.

Proceeds will be used to repay debt.

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