Exopack talks upsized $235 million seven-year notes at 9¾%-10% yield

By Paul A. Harris

Portland, Ore., May 24 - Exopack Holding Corp. talked its upsized $235 million offering of seven-year senior notes (Caa1/CCC+) with a 9¾% to 10% yield on Tuesday, according to an informed source.

The deal, which is being led by joint bookrunners Goldman Sachs & Co. and Bank of America Merrill Lynch, is set to price on Wednesday.

Proceeds, along with proceeds from the downsized $350 million bank loan, will be used to fund the tender offer for the company's 11¼% senior notes due 2014 and to pay a dividend to stockholders.

The bond offering was upsized from $225 million. The company's bank loan was downsized to $350 million from $400 million. With the $40 million overall decrease in the debt financing, the dividend will also be downsized by $40 million.

The Rule 144A and Regulation S with registration rights notes come with three years of call protection.

Exopack is a Spartanburg, S.C.-based full-service paper and plastic flexible packaging products manufacturer.

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