Freedom Group talks $200 million six-year notes at 10¾% to 11% with about 3 points of OID

By Paul A. Harris

St. Louis, July 14 - Freedom Group, Inc. set price talk for its $200 million offering of six-year senior secured notes (B1/B+) at 10¾% to 11% on Tuesday, according to an informed source.

The notes are expected to price with an original issue discount of approximately 3 points.

Books close at noon ET on Wednesday, with the notes expected to price after that.

Banc of America Securities LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities are joint bookrunners for the deal from the parent of Remington Arms Co. Barclays Capital Inc. and Jefferies & Co. are co-managers.

The notes are secured by a first lien on the company's property, plant and equipment and a second lien on intellectual property and working capital.

The notes have three years of call protection and have a change-of-control put at 101%.

Proceeds will be used to repay existing debt, including refinancing Remington's 10½% senior notes due 2011.

The prospective issuer is a Madison, N.C.-based firearms company.

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