Pinnacle talks $300 million seven-year secured notes to yield 9%-9¼%

By Paul A. Harris

Portland, Ore., Sept. 12 - Pinnacle Agricultural Holdings, LLC and Pinnacle Operating Corp. talked a $300 million offering of seven-year second-lien senior secured notes (Caa1/CCC+) to yield 9% to 9¼%, a syndicate source said on Thursday.

Books close at 11 a.m. ET on Friday, and the deal is set to price thereafter.

Credit Suisse Securities (USA) LLC, BMO Securities, Citigroup Global Markets Inc. and Apollo Global Securities are the joint bookrunners.

The notes will be non-callable until 2016, at which time they will become callable at par plus 50% of the coupon. The notes feature a three-year 35% equity clawback and a 101% poison put.

The Mayfield, Ky.-based agricultural input supply and distribution company plans to use the proceeds to refinance its second-lien term loan, to repay ABL borrowings and for general corporate purposes.

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