The financial woes of this retail player are more than well-known. That may be why it took so many brokerage firms to get the offering off. Joint book-running managers were listed as J.P. Morgan, Barclays and Goldman Sachs. The co-managers were Bank of America Merrill Lynch, Wells Fargo Securities, Guggenheim Securities, HSBC, RBS and Regions Securities. That many bankers for a mere $350 million?
The company intends to use the net proceeds from this offering to pay the tender consideration and related transaction fees and expenses for its cash tender offers for existing notes due in 2015, 2016 and 2017. Any remaining net proceeds will be used for general corporate purposes.
The filing said:
The notes will be our unsecured and unsubordinated obligations and will rank equal in right of payment with all of our existing and future unsecured and unsubordinated indebtedness, including our existing notes, and will be effectively subordinated to our secured indebtedness, including borrowings under our senior secured credit facilities. None of our existing or future subsidiaries will guarantee our obligations under the notes, and the notes will be structurally subordinated to all existing and future liabilities of our existing or future subsidiaries. We do not intend to apply for the listing of the notes on any securities exchange or for quotation of the notes on any automated dealer quotation system.
With shares trading around $10.95, the 52-week trading range is $4.90 to $14.65. A balance sheet snapshot has been provided below, as well as including the existing notes coming due through time.
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