By Abigail W. Adams
Portland, Me., June 16 – Iris Holdings Inc. priced $400 million 6.5-year senior notes (Caa2/CCC+) backing the buyout of Intertape Polymer Group Inc. on Wednesday with a coupon of 10% and an initial offer price of 82 to yield 14.361%, according to a market source.
Pricing came in line with coupon talk and wide of official talk for an issue price of 83 to 85 with a yield of 13½% to 14%.
Original guidance was for an offer price in the low 90s for a yield in the high-11% to low-12% area.
Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Jefferies LLC, BMO Capital Markets Corp. and Golub Capital were bookrunners for the Rule 144A and Regulation S offering.
The notes come with three years of call protection.
Proceeds together with a $1.5 billion term loan will be used to help fund the buyout of the company by Clearlake Capital for C$40.50 per share in an all-cash transaction valued at about US$2.6 billion, including net debt.
The transaction is expected to close in the third quarter of 2022.
Special purpose vehicle Iris Holdings will merge with Intertape Polymer upon completion of the buyout.
Intertape Polymer, based in Montreal and Sarasota, Fla., is a provider of packaging and protective solutions.
| Issuer: | Iris Holdings Inc.
|
| Amount: | $400 million
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| Issue: | Senior notes
|
| Term: | 6.5 years
|
| Bookrunners: | Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Jefferies LLC, BMO Capital Markets Corp. and Golub Capital
|
| Coupon: | 10%
|
| Price: | 82
|
| Yield: | 14.361%
|
| First call: | Three years
|
| Trade date: | June 15
|
| Ratings: | Moody's: Caa2
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| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S
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| Price talk: | Issue price of 83 to 85 with yield of 13½% to 14%
|
| Guidance: | Offer price in the low 90s for a yield in the high-11% to low-12% area
|
| Marketing: | Roadshow
|
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