Appleton Papers issues talk on $350 million two-tranche offering

By Paul A. Harris

St. Louis, June 1 - Price talk emerged Tuesday on Appleton Papers Inc.'s $350 million two-part high-yield bond offering, according to a market source, who added that the deal is expected to price on Wednesday afternoon.

In the first tranche, price talk on the $150 million of seven-year senior notes (Ba2/BB-), which are non-callable for four years, is 8% to 8¼%.

Meanwhile price talk on $200 million of 10-year senior subordinated notes (B3/B+), which are non-callable for five years, is 125 basis points behind the senior tranche.

Bear Stearns & Co. and UBS Investment Bank are the underwriters.

Proceeds will be used to repay debt.

Appleton Papers is an Appleton, Wis., carbonless paper and printing products company.

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