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American Seafoods downsizes IDS deal to $450 million, to price late Thursday
By Paul A. Harris
St. Louis, Aug. 11 - American Seafoods Corp. downsized its offering of Income Deposit Securities (IDS) to $450 million and lowered the offering price of the stock, according to a syndicate source.
The deal, previously expected to generate $550 million of proceeds, is expected to price after Thursday's close, the source added.
The Seattle-based seafood harvester and processor announced in an amended S-1 document filed Wednesday with the U.S. Securities and Exchange Commission that it intends to sell 30,740,741 IDS, decreased from the previously announced 34,375,000.
Each IDS will be comprised of a share of class A common stock. According to the company's Wednesday S-1 filing, the shares are expected to price between $13.50 and $14.00 per share.
That price range has been decreased from $16.00 to $18.00 per share, according to the syndicate source.
In addition to the stock, the IDS will contain a 15-year high-yield note.
The total size of the IDS note offering has been decreased to $158.3 million from $177.0 million, according to the filing.
Separate from the IDS offering, the company also plans to sell $27.9 million of the 15-year notes.
CIBC World Markets and Merrill Lynch & Co. are leading the deal. UBS Investment Bank is the joint lead manager. Credit Suisse First Boston, RBC Capital Markets, Legg Mason, KeyBanc Capital Markets, SunTrust Robinson Humphrey, Piper Jaffray, Wells Fargo Securities, Scotia Capital and Morgan Joseph & Co. are co-managers.
Proceeds will be used to indirectly redeem additional equity from owners of affiliate American Seafoods LP.
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