By Cristal Cody
Chicago, Sept. 7 – Packaging Corp. of America sold $700 million of 3.05% 30-year senior notes (Baa2/BBB) at 99.473 to yield 3.077% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at Treasuries plus 110 basis points, low to spread talk in the Treasuries plus 135 bps area, a market source had said.
The notes have a make-whole call at Treasuries plus 20 bps and then a par call six months before the maturity of the notes.
If there is a change-of-control triggering event, the company will have to make an offer to repurchase the notes at 101.
Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC are joint bookrunners for the notes.
Proceeds will be used, with cash on hand, to redeem the company’s 4.5% senior notes due 2023.
Packaging Corp. of America is based in Lake Forest, Ill., and makes containerboard and corrugated packaging products.
| Issuer: | Packaging Corp. of America
|
| Issue: | Senior notes
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| Amount: | $700 million
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| Maturity: | Oct. 1, 2051
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| Bookrunners: | Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC
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| Co-managers: | BMO Capital Markets Corp., BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, PNC Capital Markets LLC, Siebert Williams Shank & Co., LLC and U.S. Bancorp Investments, Inc.
|
| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Mayer Brown LLP
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| Coupon: | 3.05%
|
| Price: | 99.473
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| Yield: | 3.077%
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| Spread: | Treasuries plus 110 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps, par call starting April 1, 2051
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| Trade date: | Sept. 7
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| Settlement date: | Sept. 21
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 135 bps area
|
| Cusip: | 695156AW9
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