By Paul A. Harris
St. Louis, Oct. 16 - Boise Cascade Corp. sold $500 million of seven- and 10-year senior secured notes (Ba2/BB) on Thursday, according to a syndicate source.
The company priced $300 million notes due Nov. 1, 2010 at par to yield 6½%. Price talk was for a yield of 6 5/8%-6 7/8%.
Boise Cascade also priced $200 million notes due Nov. 1, 2013 at par to yield 7%. Price talk was for a yield 37.5-50 basis points behind the seven-year tranche.
Goldman Sachs & Co. ran the books for the off-the-shelf deal. The co-managers were Banc of America Securities, US Bancorp Piper Jaffrey, ABN Amro, Harris Nesbitt, TD Securities, Wells Fargo, ING, Tokyo Mitsubishi and Sumitomo.
Boise Cascade will use proceeds to repay debt under its credit facility, to help fund its acquisition of OfficeMax, Inc. and for general corporate purposes.
The issuer is a Boise, Ida.-based provider of office, building and paper products.
| Issuer: | Boise Cascade Corp.
|
| Amount: | $500 million
|
| Security description: | Seven-year and 10-year senior secured notes
|
| Bookrunner: | Goldman Sachs
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Settlement date: | Oct. 21 (T+3)
|
|
|
| Seven-year tranche
|
| Amount: | $300 million
|
| Maturity: | Nov. 1, 2010
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 260 basis points
|
| Calls: | Non-callable for life, with a Treasuries plus 50 basis points make-whole call
|
| Equity clawback: | Until Nov. 1, 2006 for 35% at 106.50
|
| Price talk: | 6 5/8%-6 7/8%
|
|
|
| Ten-year tranche
|
| Amount: | $200 million
|
| Maturity: | Nov. 1, 2013
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 255 basis points
|
| Call features: | Treasuries plus 50 basis points make-whole call until Nov. 1, 2008, then at 103.50, 102.333, 101.167, par on Nov. 1, 2011 and thereafter
|
| Equity clawback: | Until Nov. 1, 2006 for 35% at 107
|
| Price talk: | 37.5-50 basis points behind the seven-year tranche
|
|
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