Reader's Digest to price $525 million seven-year notes Jan. 25 week

By Paul A. Harris

St. Louis, Jan. 25 - The Reader's Digest Association, Inc. began a roadshow on Monday for its $525 million offering of seven-year senior secured first-lien floating-rate notes (expected ratings B1/B+), according to a market source.

The roadshow wraps up on Friday, and the Rule 144A and Regulation S with registration rights notes are expected to price on the same day.

J.P. Morgan Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities and Goldman Sachs & Co. are joint bookrunners. Moelis & Co. is the co-manager.

The notes become callable in year three at 103. The call premium declines to 102 in year four, to 101 in year five and to par in year six.

Proceeds will be used to refinance debt.

The prospective issuer is a Pleasantville, N.Y., publishing and direct marketing company.

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