By Paul A. Harris
St. Louis, Nov. 14 - Underwriters have converted the Catalina Marketing Corp. $490 million high-yield bridge loan into two tranches of notes (Caa1/B-), according to market sources.
The conversion includes $330 million of 10½% senior payment-in-kind toggle notes due Oct. 1, 2015, which come with a 75 basis point PIK step-up taking the coupon to 11¼%, and $160 million of 11 5/8% senior subordinated notes due Oct. 1, 2017.
Bear Stearns, Morgan Stanley & Co. Inc. and Goldman Sachs & Co. are the underwriters for the Rule 144A notes.
Proceeds were used to fund the leveraged buyout of the company by Hellman & Friedman Capital partners VI.
Catalina is a St. Petersburg, Fla., provider of promotional marketing services.
| Issuer: | Catalina Marketing Corp.
|
| Total amount: | $490 million
|
| Bookrunners: | Bear Stearns, Morgan Stanley & Co. Inc., Goldman Sachs & Co.
|
| Trade date: | Nov. 12, 2007
|
| Settlement date: | Nov. 17, 2007
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A
|
|
|
| Senior PIK toggle notes
|
| Amount: | $330 million
|
| Maturity: | Oct. 1, 2015
|
| Cash coupon: | 10½%
|
| PIK coupon: | 11¼%
|
| Call protection: | Three years
|
| Equity clawback: | Until Oct. 15, 2010 for 35% at 110.50
|
| Change-of-control put: | 101.0
|
|
|
| Senior subordinated notes
|
| Amount: | $160 million
|
| Maturity: | Oct. 1, 2017
|
| Coupon: | 11 5/8%
|
| Call protection: | Four years
|
| Equity clawback: | Until Oct. 1, 2010 for 35% at 111.625
|
| Change-of-control put: | 101.0
|
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