New Issue: HRG prices $100 million tap of 7 7/8% secured notes due 2019 at 104.5 to yield 6.069%

By Paul A. Harris

Portland, Ore., April 9 – HRG Group, Inc. priced a $100 million tack-on to its 7 7/8% senior secured notes due July 15, 2019 (Ba3/B+) at 104.5 to yield 6.069% on Thursday, according to an informed source.

The reoffer price came on top of price talk.

Credit Suisse Securities (USA) LLC and Jefferies LLC were the joint bookrunners.

The New York-based diversified holding company plans to use the proceeds to fund working capital and for general corporate purposes.

Issuer HRG Group, Inc.

Face amount:	$100 million
Proceeds:	$105 million
Maturity:	July 15, 2019
Security description:	Tack-on to 7 7/8% senior secured notes due July 15, 2019
Bookrunners:	Credit Suisse Securities (USA) LLC, Jefferies LLC
Coupon:	7 7/8%
Price:	104.5
Yield to worst:	6.069%
Spread:	525 bps
First call:	Jan. 15, 2016 at 105.906
Equity clawback:	35% at 107.875 until Jan. 15, 2016
Change-of-control put:	101%
Trade date:	April 9
Settlement date:	April 14 with accrued interest
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	104.5
Marketing:	Quick to market
Original issue:	$700 million priced at 99.362 to yield 8% in December 2012
Previous tack-on:	$225 million priced at 101.5 to yield 7.474% in July 2013
Fungibility:	Upon registration the new tack-on notes will become fungible with the existing notes
Total issue size:	$1,025,000,000

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