HEMA sets price talk in €760 million two-part offering of notes; pricing Friday

By Paul A. Harris

Portland, Ore., July 13 – Amsterdam-based discount retailer HEMA BV set price talk for its €760 million two-part offering of high-yield notes, a market source said on Thursday.

The deal includes €610 million of five-year senior secured floating-rate notes (B2/B-), which come with one year of call protection. The notes are talked at Euribor plus 575 basis points to 600 bps with a 0% Euribor floor.

The unsecured portion of the deal comes in the form of a €150 million amount of 5.5-year senior notes (Caa2/CCC), which come with two years of call protection. The notes are talked to yield in the 8½% area.

The deal is set to price on Friday.

Credit Suisse is the lead.

Proceeds from the Rule 144A and Regulation S offering, together with cash on hand, are expected to be used to pay off the company's existing secured floating-rate notes, secured fixed-rate notes and unsecured notes and pay off its existing purchase money obligation facility.

The issuing entities will be subsidiaries HEMA Bondco I BV and HEMA Bondco II BV.

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