Duane Reade to close books Friday for downsized, restructured $300 million secured notes offer

By Paul A. Harris

St. Louis, July 29 - The order books will close Friday for Duane Reade Inc.'s downsized, restructured $300 million offering of six-year senior secured notes (Caa1/B-), according to an informed source.

Previously the New York City-based drugstore chain company was marketing $325 million of notes in two tranches.

In the restructuring announced on Wednesday, Duane Reade upsized the secured notes tranche to $300 million from $215 million, and eliminated the proposed $110 million subordinated seven-year notes tranche.

Goldman Sachs & Co. is the left lead bookrunner for the Rule 144A with registration rights/Regulation S offer. Banc of America Merrill Lynch is the joint bookrunner.

The notes come with three years of call protection.

Proceeds will be used to fund a tender for the existing senior secured floating-rate notes due 2010 and the 9¾% senior subordinated notes due 2011, and to repay the asset-based loan.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.