Interactive Health restructures deal, to sell $85 million at discount; yield talk 103/4-11%

By Paul A. Harris

St. Louis, March 18 - Price talk emerged Thursday on a restructured high-yield bond offering from Interactive Health Finance Corp., which is expected to price on Friday or Monday, according to an informed source.

The company now plans to sell $85 million proceeds ($100 million face) of seven-year senior notes (B2/B-), discounted to 85.0. The yield being talked is 10¾% to 11%.

The company had initially been in the market with an $80 million par bond issue.

An extra year of call protection was also added so that now the notes will be non-callable for four years instead of the originally announced three years.

Jefferies & Co. is the bookrunner for the Rule 144A offering, which has registration rights. Imperial Capital LLC is co-manager.

Proceeds will be used to repay bank debt and fund a dividend payment.

The Long Beach, Calif.-based company manufactures and markets robotic massage chairs.

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