By Paul A. Harris
St. Louis, Jan. 30 - Nectar Merger Corp. priced an upsized $175 million offering of 10-year senior subordinated notes (B3/B-) Friday at par to yield 7¾%, a syndicate source said.
The issue, which matures Feb. 15, 2014, was increased from a planned $150 million offering.
Price talk was 7¾% to 8%.
Credit Suisse First Boston and UBS Investment Bank ran the books for the Rule 144A issue. Wells Fargo Securities was the co-manager.
Proceeds will be used to help fund the acquisition of FTD Inc. by Leonard Green & Partners LP. The proceeds will be held in escrow pending the acquisition.
Nectar Merger Corp. will be merged into FTD Inc., a floral services and products company with headquarters in Downers Grove, Ill.
| Issuer: | Nectar Merger Corp. (to be merged into FTD Inc.)
|
| Amount: | $175 million (increased from $150 million)
|
| Maturity: | Feb. 15, 2014
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Credit Suisse First Boston, UBS Investment Bank
|
| Co-manager: | Wells Fargo Securities
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 360 basis points
|
| Call features: | Callable after Feb. 15, 2009 at 103.875, 102.583, 101.292, par on Feb. 15, 2012 and thereafter
|
| Equity clawback: | Until Feb. 15, 2007 at 107.75 for up to 35%
|
| Pricing date: | Jan. 30
|
| Settlement date: | Feb. 6
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 7¾%-8%
|
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