Ace Hardware talks $300 million eight-year secured notes at 9% area

By Paul A. Harris

St. Louis, May 7 - Ace Hardware Corp. set price talk for its $300 million offering of eight-year senior secured notes (Ba2/BB-) at the 9% area on Wednesday, according to an informed source.

Books close at 3 p.m. ET on Thursday for all accounts except those in Chicago, for whom books close at 5 p.m. ET. The notes are expected to price thereafter.

Banc of America Securities LLC is the bookrunner for the Rule 144A for life notes.

The notes will come with four years of call protection.

Proceeds will be used to repay debt and for general corporate purposes.

The notes come with first-priority security in real property, stock and other tangible and intangible assets (including the trade name) owned by the issuer and subsidiary guarantors and a second-priority interest in accounts receivable and investments.

The guarantors include all existing and future non-insurance related domestic subsidiaries.

Oak Brook, Ill.-based Ace Hardware is a marketer and distributor of hardware merchandise to its network of independent retailers.

© 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.