RSI Home Products talks $525 million secured notes with 7% area yield

By Paul A. Harris

Portland, Ore., Feb. 14 - RSI Home Products Inc. set talk for a $525 million offering of senior secured second-lien notes due 2018 (B1/B+) in the 7% area, a syndicate source said on Thursday.

The books are closed, and the deal is set to price early Friday.

BofA Merrill Lynch, Wells Fargo Securities LLC and Barclays are joint bookrunners for the Rule 144A for life notes.

The securities will be callable in two years at par plus 75% of the coupon, with a special call that allows the issuer to redeem up to 10% of the notes at 103 for the first two years.

The notes feature a 101% poison put.

Proceeds will be used to repurchase Onex Partners' existing equity stake in the company, to repay all debt under the company's existing credit facilities and for general corporate purposes.

RSI Home is a Lincolnton, N.C.-based manufacturer of in-stock and made-to-stock kitchen, bath and storage products.

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