Luxury goods firm Waterford Wedgwood priced a €166m high-yield mezzanine note to yield 10%, a lead manager for the sale said.
Waterford Wedgwood chief executive officer Redmond O’Donoghue said: 'We are pleased at the completion of our bond, which was over-subscribed. The successful completion of this offering, combined with our fully underwritten rights issue and our new, reduced senior debt structure, sets a solid foundation for Waterford Wedgwood’s future growth.'
The seven-year bond was priced at 99.381% of face value and carries a coupon of 9.875%, the lead manager said. According to Reurters the coupon is paid semi-annually, and the bond is callable after three years.
The yield is at the high end of price guidance of 9.75-10% released on Tuesday, but the bond is slightly larger than the expected €165m size. Barclays Capital managed the sale.
A trader said that the bond was trading down on Thursday morning to be bid at 97.5% of face value, in thin trading.
Credit rating agency Standard & Poor's has assigned Waterford a B+ long-term corporate credit rating with a stable outlook and rated the notes issue B-.
Earlier this month, Waterford Wedgwood unveiled a crucial refinancing programme to pay off existing debt and underpin an improved sales outlook.
