By Paul A. Harris
St. Louis, Jan. 29 - Appleton Papers Inc. priced a $305 million issue of restructured 10½% 5.5-year senior secured notes (B1/B+/) at 98.035 to yield 11% on Friday, according to market sources.
Both the coupon and the yield printed on top of the price talk.
Broadpoint Gleacher Securities and Goldman Sachs & Co. were joint physical bookrunners.
Call protection was increased to three years from 2.5 years, and a special call feature at 103 was eliminated.
A change was made to the bond covenants mandating that no additional senior secured debt shall be added to repurchase capital stock of the parent entity, to make other payments or to pay expenses in connection with the termination of the employee stock ownership plan.
The notes are secured by a first-priority lien on certain of the property and assets of Appleton subject to exceptions and permitted liens.
Proceeds, together with borrowings under Appleton's new revolving credit facility, will be used to repay amounts outstanding under Appleton's existing credit facilities.
The issuer is an Appleton, Wis.-based paper manufacturer.
| Issuer: | Appleton Papers Inc.
|
| Amount: | $305 million
|
| Maturity: | June 15, 2015
|
| Securities: | Senior secured notes
|
| Bookrunners: | Broadpoint Gleacher Securities, Goldman Sachs & Co.
|
| Coupon: | 10½%
|
| Price: | 98.035
|
| Yield: | 11%
|
| Spread: | 865 bps
|
| Call features: | Callable at 105.25 on Feb. 8, 2013, par on and after Feb. 8, 2014 (call protection increased from 2.5 years; special 103 call feature eliminated)
|
| Trade date: | Jan. 29
|
| Settlement date: | Feb. 8
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 10½% coupon, to yield 11%
|
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