New Issue: Liz Claiborne sells $205 million eight-year notes at par to yield 10½%

By Paul A. Harris

Portland, Ore., April 1 - Liz Claiborne, Inc. priced a slightly upsized $205 million issue of eight-year senior secured notes (B2/B-/) at par to yield 10½% on Friday, according to an informed source.

The yield printed on top of the price talk.

Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners for the issue, which was upsized from $200 million.

The New York-based designer and marketer of apparel and accessories plans to use the proceeds to fund the tender offer for its euro-denominated notes due in 2013 and for general corporate purposes.

Issuer:	Liz Claiborne, Inc.
Amount:	$205 million, increased from $200 million
Maturity:	April 15, 2019
Securities:	Senior secured notes
Bookrunners:	Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
Coupon:	10½%
Price:	Par
Yield:	10½%
Spread:	736 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 15, 2014, then callable at 105.25, 103.5, 102.625, par on and after April 15, 2017
Equity clawback:	35% at 110.50 until April 15, 2014
Change-of-control put:	101%
Trade date:	April 1
Settlement date:	April 7
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	10½% area
Marketing:	Roadshow

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