New Issue: Exopack prices $235 million seven-year notes at par to yield 10%

By Paul A. Harris

Portland, Ore., May 25 - Exopack Holding Corp. priced an upsized $235 million issue of seven-year senior notes (Caa1/CCC+/) at par to yield 10% on Wednesday, according to an informed source.

The yield printed at the wide end of the 9¾% to 10% price talk.

The deal was led by joint bookrunners Goldman Sachs & Co. and Bank of America Merrill Lynch.

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.

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

Issuer:	Exopack Holding Corp.
Amount:	$235 million, increased from $225 million
Maturity:	June 1, 2018
Securities:	Senior notes
Bookrunners:	Goldman Sachs & Co., Bank of America Merrill Lynch
Co-managers:	Houlihan Lokey, Inc., Imperial Capital, LLC, Mesirow Financial, Inc., Oppenheimer & Co.
Coupon:	10%
Price:	Par
Yield:	10%
Call features:	Callable on June 1, 2014 at 107.5, 105, 102.5, par on and after June 1, 2017
Trade date:	May 25
Settlement date:	May 31
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	9¾% to 10%
Marketing:	Roadshow

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