New Issue: Constellation Enterprises prices $130 million 10 5/8% five-year notes to yield 11%

By Paul A. Harris

Portland, Ore., Jan. 20 - Constellation Enterprises LLC priced a $130 million issue of 10 5/8% five-year first-priority senior secured notes (B2/B/) at 98.583 to yield 11% on Thursday, according to an informed source.

The yield printed on top of yield talk, and the reoffer price came in line with discount talk of 1 point to 2 points.

Credit Suisse Securities ran the books.

Proceeds will be used to refinance the company's existing ABL revolver and term loans.

Constellation Enterprises is a specialty manufacturer of engineered metal products.

Issuer:	Constellation Enterprises LLC
Face amount:	$130 million
Proceeds:	$128,158,000 (approximate)
Maturity:	Feb. 1, 2016
Securities:	First-priority senior secured notes
Bookrunner:	Credit Suisse Securities
Coupon:	10 5/8%
Price:	98.583
Yield:	11%
Spread:	899 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Aug. 1, 2013, then callable at 105.313, 102.656, par on and after Aug. 1, 2015
Equity clawback:	35% at 110.625 until Aug. 1, 2013
Trade date:	Jan. 20
Settlement date:	Jan. 28
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A for life and Regulation S
Price talk:	11% yield including 1-2 points original issue discount
Marketing:	Quick to market

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