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Claire’s Stores driving by high yield bond mart with $320M offering

claires stores logoClaire’s Stores is in the market with a $320 million drive-by of unsecured notes. Goldman Sachs is lead left, and is joined by Credit Suisse, J.P. Morgan, RBC, and Apollo as fellow bookrunners. An investor call for the seven-year (non-call three) transaction is scheduled for 10:30 a.m. EDT today.

Proceeds from the 144A/RegS eligible deal will be used to redeem the remaining extant senior fixed-rate notes and senior toggle notes.

The new notes feature an IPO call, whereby they are callable at 103 until 18 months after the close should there be a qualified IPO.

In March, the company drove-by with a $210 million offering of seven-year (non-call four) first-lien secured notes, rated B-/B2. Proceeds from those notes were to be used to repurchase up to $210 million of its 9.25% unsecured notes due 2015 at 98.8, the 9.625% unsecured toggle notes due 2015, and the 10.375% unsecured toggle notes due 2015 at 98.875 via a tender offer.

According to the offering memorandum of the $210 million deal, following that bond issue and tender offer, $115.3 million of 9.25% notes due 2015, and $197.2 million of 9.625%/10.375% toggles notes due 2015, was left outstanding

The $210 million offering advanced to 101.5/102 in post-break trading, according to sources, and is currently quoted at 105.75 to yield 5.1%, according to S&P Capital IQ.

Claire’s Stores, Inc. operates as a specialty retailer of fashionable jewelry and accessories for young women, teens, and children worldwide. It has a B- corporate credit rating at Standard & Poor’s. – Luke Millar

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