Samsonite returns with $325 million equivalent in two parts to price Tuesday, Wednesday

By Paul A. Harris

St. Louis, May 24 - Samsonite Corp. returned to the high-yield market on Monday with a $325 million equivalent two-tranche Rule 144A/Regulation S offering that is slightly modified from the deal it postponed on May 14, according to a syndicate source.

For both tranches the tenor of the notes has been reduced by one year.

Price talk is in the area of 8 7/8% on $200 million of seven-year senior subordinated notes, which are non-callable for four years (B3/B-). Pricing is expected to take place Tuesday.

The fixed-rate tranche that the Denver-based manufacturer, marketer and distributor of luggage and travel-related products postponed had an eight-year structure that was non-callable for four years.

Merrill Lynch & Co. and Deutsche Bank Securities are joint bookrunners.

Meanwhile, price talk is three-month Euribor plus 437.5 basis points area on €105 million of six-year floating-rate notes, which are non-callable for two years (B1/B+). The notes are expected to price on Wednesday.

The floating-rate tranche that Samsonite postponed had a seven-year structure that was non-callable for two years.

Deutsche Bank Securities is on the left for the floating-rate tranche, for which Merrill Lynch & Co. will be joint bookrunner.

Lehman Brothers and UBS Investment Bank will be co-managers for both tranches.

Proceeds will be used to retire the company's outstanding 10¾% senior subordinated notes due 2008.

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