By Paul A. Harris
St. Louis, May 23 - Rent-Way, Inc. priced a downsized, restructured offering of $205 million of 11 7/8% senior secured notes due June 15, 2010 (B3/B-) Friday at 98.252 to yield 12¼%, according to an informed source.
Price talk was 12% area.
The notes had originally been marketed at $215 million in size and with four years of call protection. They were changed to non-callable for life with a Treasuries plus 175 basis points make-whole call on Friday.
Citigroup was the bookrunner for the Rule 144A transaction.
In a Friday press release issued by the company after the transaction was completed, Rent-Way stated that the new 11 7/8% seven-year bullets will be secured by a second priority lien on substantially all of the company's assets.
Closing of the deal depends on Rent-Way entering into a new $60.0 million revolving credit facility and selling $15.0 million of 8% convertible preferred stock in a private placement, the release added.
Proceeds will be used to repay the company's current credit facility.
The issuer is an Erie, Pa. rental-purchase store operator.
| Issuer: | Rent-Way, Inc.
|
| Amount: | $205 million (decreased from $15 million)
|
| Maturity: | June 15, 2010
|
| Security description: | Senior secured notes
|
| Bookrunner: | Citigroup
|
| Coupon: | 11 7/8%
|
| Price: | 98.252
|
| Yield: | 12¼%
|
| Spread: | 947 basis points
|
| Call: | Non-callable for life with a T+175 basis points make-whole call
|
| Equity clawback: | Until June 15, 2006 for 25% at 111.875
|
| Settlement date: | June 2, 2003
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Rule 144A Cusip: | 893934AA7
|
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