Published on 4/28/2010 in the Prospect News High Yield Daily.
New Issue: American Seafoods Group prices $400 million notes, units
By Paul A. Harris
St. Louis, May 28 - American Seafoods Group LLC, issuing via various entities, priced $400 million of securities on Wednesday, according to an informed source.
American Seafoods Group LLC and American Seafoods Finance, Inc. priced a $275 million issue of 10¾% six-year senior subordinated notes (expected ratings B3/B/) at 98.913 to yield 11%.
In addition, ASG Consolidated LLC and ASG Finance, Inc. priced a $125 million issue of units comprised of 15% seven-year senior PIK notes and penny warrants representing 15% indirect ownership of ASG Consolidated.
The notes were priced at par.
Bank of America Merrill Lynch and Wells Fargo Securities, LLC were the joint bookrunners for the quick-to-market deal.
Co-managers were DnB NOR Markets, Inc., Mitsubishi UFJ Securities (USA), Inc., Nordea Bank Danmark A/S, Rabo Securities USA, Inc. and KeyBanc Capital Markets Inc.
Proceeds, along with a new credit facility, will be used to refinance all existing debt, to repay a seller note and to redeem certain preferred limited partnership interest of the parent companies.
American Seafoods is a Seattle-base seafood company.
| Company: | American Seafoods Group LLC
|
| Joint bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities, LLC
|
| Co-managers: | DnB NOR Markets, Inc., Mitsubishi UFJ Securities (USA), Inc., Nordea Bank Danmark A/S, Rabo Securities USA, Inc., KeyBanc Capital Markets Inc.
|
| Trade date: | April 28
|
| Settlement date: | May 7
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Senior subordinated notes
|
| Issuers: | American Seafoods Group LLC and American Seafoods Finance, Inc.
|
| Face amount: | $275 million
|
| Proceeds: | $272 million (approximate)
|
| Maturity: | May 15, 2016
|
| Coupon: | 10¾%
|
| Price: | 98.913
|
| Yield: | 11%
|
| Spread: | 808 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps until May 15, 2013, then callable at a premium
|
| Equity clawback: | 40% at 110.75 until May 15, 2013
|
| Expected ratings: | Moody's: B3
|
| Standard & Poor's: B
|
|
|
| Units
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| Issuers: | ASG Consolidated LLC and ASG Finance, Inc.
|
| Amount: | $125 million
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| Securities: | Senior PIK notes with penny warrants representing 15% indirect ownership of ASG Consolidated
|
| Notes maturity: | May 15, 2017
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| Coupon: | 15% (may be paid in kind under certain conditions)
|
| Price: | Par
|
| Yield: | 15%
|
| Notes spread: | 1,184 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps until May 15, 2013, then callable at a premium
|
| Equity clawback: | 40% at 115.00 until May 15, 2013
|
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