By Paul A. Harris
St. Louis, Dec. 15 - Briggs & Stratton Corp. priced an upsized $225 million issue of non-callable 10-year senior notes (Ba2/BB-/) at par to yield 6 7/8% on Wednesday, according to an informed source.
The yield printed at the tight end of the 7% area price talk.
Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners for the issue, which was upsized from $200 million.
The offering was registered with the Securities and Exchange Commission.
Proceeds will be used to redeem the company's 8 7/8% notes due 2011.
Briggs & Stratton is a Wauwatosa, Wis.-based producer of air-cooled gasoline engines for outdoor power equipment.
| Issuer: | Briggs & Stratton Corp.
|
| Amount: | $225 million, increased from $200 million
|
| Maturity: | Dec. 15, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC
|
| Co-managers: | Robert W. Baird & Co., Deutsche Bank Securities Inc., PNC Capital Markets, U.S. Bancorp Investments
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 339 bps
|
| Call features: | Non-callable (Make-whole provision at Treasuries plus 50 bps)
|
| Equity clawback: | 35% at 106.875 until Dec. 15, 2013
|
| Trade date: | Dec. 15
|
| Settlement date: | Dec. 20
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 7% area
|
| Marketing: | Brief roadshow
|
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