Apex Tool talks $325 million five-year senior notes to yield 8¾%-9%; books close Friday afternoon

By Paul A. Harris

Portland, Ore., Feb. 9 – Apex Group, LLC and BC Mountain Finance, Inc. talked a $325 million offering of five-year senior notes (existing Caa1/confirmed B-) to yield 8¾% to 9%, according to market sources.

Official talk comes wide of the 8½% to 8¾% initial guidance, a trader said.

Books close at 2 p.m. ET on Friday, and the deal is set to price thereafter.

Barclays is the lead left bookrunner. Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc. and SMBC Nikko are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after one year at 102 and feature a one-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Sparks, Md.-based manufacturer and supplier of hand and power tools plans to use the proceeds, together with its $125 million incremental term loan B, to redeem all of the existing $450 million of senior notes due 2021.

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