By Paul A. Harris
St. Louis, Mo., April 11 - Russell Corp. upsized its offering of senior notes due May 1, 2010 (B1/BB) to $250 million from $200 million and priced it Thursday at par to yield 9¼%, according to market sources.
Price talk was 9¼%-9½%.
J.P. Morgan was the bookrunner. Fleet Securities, Merrill Lynch & Co., SunTrust and Wachovia Securities were co-managers.
Proceeds from the Rule 144A deal will be used to repay all of the Atlanta, Ga.-based apparel company's bank debt and long-term notes.
Issuer: Russell Corp.
Amount: $250 million (increased from $200 million)
Maturity: May 1, 2010
Type: Senior notes
Manager: JP Morgan
Coupon: 9¼%
Price: Par
Yield: 9¼%
Spread: 404 basis points over the 10-year Treasury
Call features: Callable on May 1, 2006 at 104.625, 102.313, par on May 1, 2008 and thereafter
Equity clawback: Until May 1, 2005 for 35% at 109.25
Settlement date: April 18 (T+5)
Ratings: Moody's: B1
| Standard & Poor's: BB
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| Rule 144A CUSIP: | 782352AA6
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