By Paul A. Harris
St. Louis, Mo., Sept. 10 - Jefferson Smurfit Corp. (U.S.) priced $700 million of senior notes due Oct. 1, 2012 (B2/B) Tuesday at par to yield 8¼%, according to syndicate sources.
Price talk was for a yield of 8 1/8%-8 3/8%.
Morgan Stanley ran the books on the Rule 144A deal. Banc of America Securities, Deutsche Bank Securities Inc., JP Morgan and Salomon Smith Barney were joint leads. The co-managers were Banc One Capital Markets, BNY Securities, Credit Lyonnais, Credit Suisse First Boston, Dresdner Kleinwort Wasserstein, Scotia Capital, SG Cowen and Wachovia Securities, Inc.
Proceeds will be used to fund a tender for the company's 9¾% senior notes due 2003 and partially fund its acquisition of the Stevenson, Ala. mill from MeadWestvaco.
The issuer is a Chicago-based container company.
Issuer: Jefferson Smurfit Corp. (U.S.)
Amount: $700 million
Maturity: Oct. 1, 2012
| Type: | Senior notes
|
| Bookrunner: | Morgan Stanley
|
| Joint leads: | Banc of America Securities, Deutsche Bank Securities, JP Morgan, Salomon Smith Barney
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Price talk: | 8 1/8%-8 3/8%
|
| Spread: | 427 basis points
|
| Call features: | Callable on Oct. 1, 2007 at 104.125, 102.75, 101.375, par on Oct. 1, 2010 and thereafter
|
| Equity clawback: | Up to 35% for three years at 108.250
|
| Settlement date: | Sept. 26, 2002 (T+12)
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Rule 144A CUSIP: | 47508XAA3
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