Published on 6/3/2004 in the Prospect News High Yield Daily.
New Issue: Appleton Papers prices downsized $335 million two-part offering
By Paul A. Harris
St. Louis, June 3 - Appleton Papers Inc. priced a downsized $335 million offering of high-yield notes in two transactions Thursday, according to an informed source.
The combined issue size was decreased from $350 million.
Bear Stearns & Co. and UBS Investment Bank were the bookrunners for the Rule 144A/Regulation S issues.
The Appleton, Wis., carbonless paper and printing products company priced an upsized $185 million of seven-year senior notes (B2/BB-) at par to yield 8 1/8%. Price talk was 8% to 8¼%. The amount was increased from $150 million.
The company also priced a downsized $150 million issue of 10-year senior subordinated notes (B3/B+) at par to yield 9¾%. Price talk had the subordinated notes coming 125 basis points behind the senior notes. The issue was decreased from $200 million.
Proceeds will be used to repay debt.
| Issuer: | Appleton Papers Inc.
|
| Amount: | $335 million, decreased from $350 million
|
| Bookrunners: | Bear Stearns & Co., UBS Investment Bank
|
| Pricing date: | June 3
|
| Settlement date: | June 11
|
|
|
| Senior notes
|
| Amount: | $185 million, increased from $150 million
|
| Maturity: | June 15, 2011
|
| Coupon: | 8 1/8%
|
| Price: | Par
|
| Yield: | 8 1/8%
|
| Spread: | 372.5 basis points
|
| Call features: | Callable after June 15, 2008 at 104.063, 102.03125, par on or after June 15, 2010
|
| Equity clawback: | Until June 15, 2007 for 35% at 108.125
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Price talk: | 8%-8¼%
|
|
|
| Senior subordinated notes
|
| Amount: | $150 million, decreased from $200 million
|
| Maturity: | June 15, 2014
|
| Coupon: | 9¾%
|
| Price: | Par
|
| Yield: | 9¾%
|
| Spread: | 501 basis points
|
| Call features: | Callable after June 15, 2009 at 104.875, 102.437, 101.218, par on or after June 15, 2012
|
| Equity clawback: | Until June 15, 2007 for 35% at 109.75
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Price talk: | 125 basis points behind senior notes
|
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