New Look tightens pricing on £800 million equivalent five-year secured notes; pricing Friday

By Paul A. Harris

Portland, Ore., May 3 - New Look Retail Group Ltd. tightened pricing on its £800 million equivalent three-part offering of five-year senior secured notes (B1/B-/B) on Friday, 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 intends to price £500 million notes to yield 8¾%, 25 basis points beneath the 9% area yield talk that dealers circulated on Thursday. Meanwhile the dollar-denominated $250 million tranche has firmed up at 8 3/8%, versus the Thursday yield talk in the 8 5/8% area.

The deal also includes a €175 million floating-rate tranche of five-year notes. On Friday morning pricing on the floater firmed with a Euribor spread of 625 bps with price talk of par; that's 25 bps tighter than Thursday's 650 bps talk.

The deal is set to price Friday.

The fixed-rate notes come with two years of call protection while the floater becomes callable in one year.

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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