William Carter to price $400 million five-year notes on Wednesday

By Paul A. Harris

Portland, Ore., May 6 – William Carter Co. plans to price a $400 million offering of five-year senior notes (existing ratings Ba2/confirmed BB+) in a Wednesday drive-by following a mid-morning conference call with investors, according to market sources.

Initial price talk has the deal coming to yield in the high 5% area to 6%, according to a trader.

BofA Securities Inc. is the left bookrunner. J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and BMO Capital Markets Corp. are the joint bookrunners.

HSBC Securities (USA) Inc., RBC Capital Markets LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the senior co-managers. MUFG and PNC Capital Markets LLC are the co-managers.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 50% of the coupon. They feature a two-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Atlanta-based supplier of children's apparel plans to use a portion of the proceeds to repay borrowings under its secured revolving credit facility, with remaining proceeds to be used for general corporate purposes.

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