Interface launches $150 million secured notes due November 2013

By Paul A. Harris

St. Louis, May 28 - Interface, Inc. expects to price a $150 million offering of senior secured notes due Nov. 1, 2013 (expected ratings B1/BB-) early in the June 1 week, according to an informed source.

Banc of America Securities LLC, Citigroup Global Markets Inc. and Wachovia Securities LLC are joint bookrunners for the Rule 144A with registration rights offering. BB&T Capital Markets is a co-manager.

The non-callable notes come with a make-whole provision at Treasuries plus 50 basis points. The notes also feature a change-of-control put at 101%.

The notes are secured by a second lien on substantially all of the issuer's tangible and intangible assets, as well as a pledge of stock of subsidiaries, secured on a second-lien basis by the same assets that secure the ABL revolver. The notes are also guaranteed by each of the company's material U.S. subsidiaries.

Proceeds will be used to fund the tender for the Atlanta-based floor covering company's 10 3/8% senior notes due 2010.

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