By Paul A. Harris
St. Louis, June 23 - Ames True Temper Inc. sold $150 million of eight-year senior subordinated notes (Caa1/CCC+) at par on Wednesday to yield 10%, according to an informed source.
Price talk was 9¾% to 10%.
Banc of America Securities LLC ran the books for the Rule 144A issue. Wachovia Securities was the co-manager.
Proceeds will be used to help fund Castle Harlan's leveraged buyout of Ames True Temper from Wind Point Partners.
The issuer is a Camp Hill, Pa., manufacturer of non-motorized lawn and garden tools.
| Issuer: | Ames True Temper Inc.
|
| Amount: | $150 million
|
| Maturity: | July 15, 2012
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Banc of America Securities LLC
|
| Co-manager: | Wachovia Securities
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Spread: | 549 basis points
|
| Call features: | Callable after July 15, 2008 at 105, 102.50, par on or after July 15, 2010
|
| Equity clawback: | Until July 15, 2007 for 35% at 110.0
|
| Pricing date: | June 23
|
| Settlement date: | June 28
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 9¾%-10%
|
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