New Issue: RSI Home Products prices $525 million 6 7/8% five-year notes at par

By Paul A. Harris

Portland, Ore., Feb. 15 - RSI Home Products Inc. priced a $525 million issue of five-year senior secured second-lien notes (B1/B+/) at par to yield 6 7/8% on Friday, according to a syndicate source.

The yield printed at the tight end of yield talk that was set in the 7% area.

BofA Merrill Lynch, Wells Fargo Securities LLC and Barclays were the joint bookrunners.

The notes become callable on March 1, 2015 at 105.156. However a special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

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

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

Issuer:	RSI Home Products, Inc.
Amount:	$525 million
Maturity:	March 1, 2018
Securities:	Senior secured second-lien notes
Managers:	BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	601 bps
Call features:	Make-whole call at Treasuries plus 50 bps until March 1, 2015, then callable at 105.156, 103.438, par on and after March 1, 2017
Special call:	Issuer may redeem 10% of the notes annually at 103 during the non-call period
Equity clawback:	35% at 106.875 until March 1, 2015
Change-of-control put:	101%
Trade date:	Feb. 15
Settlement date:	Feb. 22
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	Rule 144A for life and Regulation S
Price talk:	7% area
Marketing:	Roadshow

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