IPL Plastics markets $125 million five-year PIK toggle notes; whisper 8½%-9% cash coupon at 99 area

By Paul A. Harris

Portland, Ore., Dec. 2 – IPL Plastics began a brief roadshow on Wednesday for Intelligent Packaging Holdco Issuer LP’s $125 million offering of senior PIK toggle notes due Jan. 15, 2026 (expected ratings Caa2/CCC), according to market sources.

The deal was set to launch on a mid-Wednesday morning conference call with investors.

Initial guidance has the notes coming with an 8½% to 9% cash coupon and a 75 basis points step-up for PIK payments, at an issue price in the 99 area, a trader said.

The roadshow wraps up on Thursday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

BofA Securities, Barclays, Deutsche Bank, BMO, NBC, CIBC, Credit Suisse, MUFG, RBC and TD are the joint bookrunners.

The notes become callable after Sept. 15, 2022 at 103. They feature a 40% equity clawback at par plus the coupon during the non-call period and a 101% poison put.

The Quebec-based manufacturer of specialty rigid plastics plans to use the proceeds to pay a distribution to its sponsors.

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