New Issue: Advanstar downsizes to $360 million, prices two tranches

By Paul A. Harris

St. Louis, August 4 - Advanstar Communications Inc. sold a downsized offering of $360 million second priority senior secured notes (B3/B-) in two tranches late Monday, according to a market source. The deal was reduced from $400 million.

The Boston-based business information company sold $230 million of fixed-rate notes due Aug. 15, 2010 at par to yield 10¾% (price talk was 10¼%-10½%) and $130 million of floating-rate notes due Aug. 15, 2008 at par with an interest rate of three-month Libor plus 750 basis points (price talk was Libor plus 700-725 basis points).

Credit Suisse First Boston was bookrunner on the Rule 144A deal. Banc of America Securities and Fleet Securities were co-managers.

Proceeds will be used to repay bank debt.

Issuer: Advanstar Communications Inc.

Security description:	Second priority senior secured notes
Bookrunner:	Credit Suisse First Boston
Co-managers:	Banc of America Securities, Fleet Securities
Settlement date:	Aug. 18, 2003
Ratings:	Moody's: B3
	Standard & Poor's B-
Fixed-rate tranche
Amount:	$230 million
Maturity:	Aug. 15, 2010
Coupon:	10¾%
Price:	Par
Yield:	10¾%
Spread:	692 basis points
Call features:	Non-callable for 4.5 years, then at 105.375, 102.688, par
Equity clawback:	For three years for up to 35% at 110.75
Floating-rate tranche
Amount:	$130 million
Maturity:	Aug. 15, 2008
Interest rate:	Three-month Libor plus 750 basis points
Price:	Par
Call features:	Non-callable for 3.5 years, then at 103, par
Equity clawback:	For three years for up to 35% at 110.75

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