By Paul A. Harris
St. Louis, Jan. 15 - Levi Strauss & Co. priced a $100 million principal amount add-on to its 12¼% senior notes due Dec. 15, 2012 (B3/BB-) at 103 Wednesday to yield 11.722%, according to a syndicate source.
Price talk was 103 area.
Salomon Smith Barney and Banc of America Securities were joint bookrunners. Scotia Capital was joint lead.
Levi Strauss priced the original offering of $425 million priced on Nov. 26 at 98.581 to yield 12½%.
Earlier this week, Levi Strauss said it agreed to sell a $50 million add-on to AIG Global Investment Corp. in a private placement.
Proceeds from the $100 million Rule 144A add-on will be used to repay bank debt, a portion of which will then be redrawn to pay part of the companys 6.80% notes due November 2003.
Of the original $425 million deal, $115 million was used to repay bank debt and the rest, subject to obtaining bank waivers, to repay a portion of the 6.80% notes due Nov. 1, 2003, or repay other debt, or for general corporate purposes. The add-on sold to AIG was also used to repay the 6.80% notes or other debt.
The issuer is a San Francisco apparel maker.
Issuer: Levi Strauss & Co.
| Amount: | $100 million (principal)
|
| Description of securities: | Add-on to 12¼% senior notes due Dec. 15, 2012
|
| Managers: | Salomon Smith Barney, Banc of America Securities (joint books), Scotia Capital (joint lead)
|
| Co-managers: | Credit Suisse First Boston, JP Morgan, Fleet Securities
|
| Maturity: | Dec. 15, 2012
|
| Coupon: | 12¼%
|
| Price: | 103
|
| Yield: | 11.722%
|
| Spread: | 768 basis points
|
| Call features: | Callable on Dec. 15, 2007 at 106.125, 104.083, 102.042, par on Dec. 15, 2010 and thereafter
|
| Equity clawback: | Until Dec. 15, 2005 for 33.33% at 112.25
|
| Settlement date: | Jan. 22, 2003 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: BB-
|
| Rule 144A Cusip: | 52736RAM4
|
| Price talk: | 103 area
|
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