By Paul A. Harris
Portland, Ore., Feb. 4 - Yankee Candle Co. priced an upsized $315 million issue of five-year senior notes (Caa1/CCC+/) at 98 on Friday, according to an informed source.
The notes will be cash pay provided the operating company has sufficient restricted payment capacity. If that capacity becomes insufficient, then the company may make PIK payments
The notes feature a cash coupon of 10¼% and a PIK coupon of 11%.
The cash yield is 10.775%. The PIK yield is 11.535%
The cash yield came toward the tight end of the 10¾% to 11% cash yield talk. The reoffer price came at the rich end of discount talk of 2 points to 3 points.
Barclays Capital Inc. and Bank of America Merrill Lynch were the joint bookrunners for the issue, which was upsized from $300 million.
Proceeds will be used to fund a distribution to equity holders.
Yankee Candle is a South Deerfield, Mass.-based designer, manufacturer, wholesaler and retailer of premium scented candles.
| Issuer: | YCC Holdings LLC / Yankee Finance, Inc. (Yankee Candle Co.)
|
| Face amount: | $315 million, increased from $300 million
|
| Proceeds: | $308.7 million
|
| Maturity: | Feb. 15, 2016
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch
|
| Cash coupon: | 10¼%
|
| PIK coupon: | 11%
|
| Price: | 98.00
|
| Cash pay yield: | 10.775%
|
| PIK yield: | 11.535%
|
| Cash pay spread: | 855 bps
|
| PIK spread: | 930 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2012, then callable at 105, 102.5, par on and after Feb. 15, 2014
|
| Equity clawback: | 35% at 110.25 until Feb. 15, 2012
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Brief roadshow
|
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