By Paul A. Harris
Portland, Ore., July 20 - Trader Corp. priced an upsized $290 million issue of 9 7/8% seven-year senior secured notes (B3/B/) at 99.367 to yield 10% on Wednesday, according to an informed source.
The yield printed on top of the price talk.
The issue was upsized from $275 million.
The notes become callable on Aug. 15, 2014 at par plus 75% of the coupon, or 107.406. A special call provision which would have allowed the issuer to redeem 10% of the notes annually at 103 during the non-call period was removed.
RBC Capital Markets was the bookrunner.
Proceeds will be used to fund the acquisition of Trader Corp. by Apax Partners.
Etobicoke, Ont.-based Trader is a print and online media publisher in the automotive, real estate, merchandise and employment sectors.
| Issuer: | Trader Corp.
|
| Amount: | $290 million, increased from $275 million
|
| Proceeds: | $288.2 million
|
| Maturity: | Aug. 15, 2018
|
| Securities: | Senior secured notes
|
| Bookrunner: | RBC Capital Markets
|
| Coupon: | 9 7/8%
|
| Price: | 99.367
|
| Yield: | 10%
|
| Spread: | 779 bps
|
| First call: | Callable on Aug. 15, 2014 at 107.406 (A special call that would have allowed the issuer to redeem 10% of the issue annually at 103 was removed)
|
| Equity clawback: | 35% at 109.875 until Aug. 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | July 20
|
| Settlement date: | July 28
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10% area
|
| Marketing: | Roadshow
|
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