By Paul A. Harris
Portland, Ore., June 11 – Varsity Brands priced an upsized $150 million issue of floating-rate notes due Dec. 22, 2024 via Hercules Achievement, Inc. and Varsity Brands Holding Co., Inc. with a coupon of Libor plus 800 basis points at 97.
The notes (CCC+) yield 9.833%, according to an informed source.
Bookrunners were Jefferies LLC, Barclays and Goldman Sachs & Co. LLC.
The issue size increased from $100 million.
The spread to Libor came inside of the 825 bps to 850 bps spread talk. The OID came rich to the 96 price talk.
June 22 is both the trade date and the settlement date, the source said.
The Memphis, Tenn.-based provider of sports, cheerleading and achievement-related products to schools in the United States plans to use the proceeds to pay down its revolving credit facility and strengthen its liquidity position.
| Issuers: | Hercules Achievement, Inc. and Varsity Brands Holding Co., Inc.
|
| Amount: | $150 million, increased from $100 million
|
| Maturity: | Dec. 22, 2024 (co-terminus with term loan)
|
| Securities: | Floating-rate senior secured notes
|
| Bookrunners: | Jefferies LLC, Barclays and Goldman Sachs & Co. LLC
|
| Coupon: | Libor plus 800 bps
|
| Libor floor: | 1%
|
| Price: | 97
|
| Yield: | 9.833%
|
| Call protection: | Non-callable for one year, then callable at 101 (deceased from 102)
|
| Trade date: | June 22
|
| Settlement date: | June 22
|
| Rating: | S&P: CCC+
|
| Price talk: | Libor plus 825 bps to 850 bps at 96
|
| Marketing: | Roadshow
|
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