New Issue: Acco prices $350 million 10-year notes at par to yield 7 5/8%

By Paul A. Harris

St. Louis, Aug. 2 - Acco World Corp. priced a $350 million issue of 10-year senior subordinated notes (B2/B) at par on Tuesday to yield 7 5/8%, according to a syndicate source.

The yield came in the middle of the 7½% to 7¾% price talk.

Citigroup and Goldman Sachs & Co. ran the books for the Rule 144A/Regulation S issue. ABN Amro, Harris Nesbitt, NatCity Investments and Piper Jaffray were the co-managers.

Proceeds will be used to finance the repayment of special dividend notes issued to the company's stockholders and to repay existing debt of General Binding Corp. and Acco related to Fortune Brands Inc.'s spinoff of Acco and the merger of Acco with General Binding Corp. to form a new entity called Acco Brands.

Acco is a Lincolnshire, Ill.-based supplier of branded office products.

Issuer:	Acco World Corp.
Amount:	$350 million
Maturity:	Aug. 15, 2015
Security description:	Senior subordinated notes
Bookrunners:	Citigroup, Goldman Sachs & Co.
Co-managers:	ABN Amro, Harris Nesbitt, NatCity Investments, Piper Jaffray
Coupon:	7 5/8%
Price:	Par
Yield:	7 5/8%
Spread:	330 basis points
Call features:	Callable after Aug. 15, 2010 at 103.813, 102.542, 101.271, par on and after Aug. 15, 2013
Equity clawback:	Until Aug. 15, 2008 for 35% at 107.625
Trade date:	Aug. 2
Settlement date:	Aug. 5
Ratings:	Moody's: B2
	Standard & Poor's: B
Price talk:	7½%-7¾%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.