Veritiv LBO tranche details emerge; financing eyes $600 million bonds

By Paul A. Harris

Portland, Ore., Nov. 1 – Tranche details surfaced on $2.125 billion of debt financing supporting the leveraged buyout of Veritiv Corp. by Clayton, Dubilier & Rice LLC (CD&R), according to a market source.

Financing includes $600 million of high-yield bonds via left lead Goldman Sachs.

It also includes a $700 million term loan B via left lead RBS and an $825 million ABL facility.

Some or all of those tranches are expected to hit the market near term, likely in the Nov. 6 week, the market source said.

Proceeds plus $1.12 billion of sponsor equity will be used to fund CD&R’s buyout of the Atlanta-based business-to-business provider of packaging, publishing and hygiene products. The acquisition is expected to close in the fourth quarter of 2023.

Goldman Sachs Bank USA, RBC Capital Markets LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., UBS Investment Bank, BNP Paribas, Mizuho Bank, TD Securities (USA) LLC, Rabobank, Natixis, Regions Capital Markets, Citizens Bank, ING Capital LLC, Stifel and the Bank of Nova Scotia provided the debt commitment.

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