New Look talks £800 million equivalent multi-tranche note offering; pricing expected Friday

By Paul A. Harris

Portland, Ore., May 2 - New Look Retail Group Ltd. set tranche sizes and price talk for its £800 million equivalent three-part offering of five-year senior secured notes (B1/B-/B) on Thursday, according to a market source.

In the sterling- and dollar-denominated fixed-rate tranches, both of which come with two years of call protection, New Look talked £500 million to yield in the 9% area and $250 million to yield in the 8 5/8% area.

The deal also includes a floating-rate tranche of five-year notes, which are talked to price at par with the coupon anticipated to come at a 650 basis point spread to Euribor. The floaters come with one year of call protection.

Books close at 5 p.m. ET Thursday for accounts in the United States and are set to close at 9:30 a.m. BST for European accounts.

The deal is set to price Friday morning, New York time.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are the joint global coordinators and joint bookrunners.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Lloyds Bank and RBS Securities Inc. are also joint bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used to repay senior and mezzanine debt and to repay PIK loans.

The issuing entity is New Look Bondco I plc, a financing unit of the Weymouth, England-based apparel and footwear retailer.

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