By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Nov. 27 – Packaging Corp. of America sold $400 million of 5.7% 10-year senior notes (Baa2/BBB) at 99.924 to yield 5.71% on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at Treasuries plus 130 basis points, lower than spread talk in the Treasuries plus 160 bps area, a market source said.
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 outstanding 3.65% senior notes due Sept. 15, 2024.
Packaging Corp. of America is based in Lake Forest, Ill., and makes containerboard and corrugated packaging products.
| Issuer: | Packaging Corp. of America
|
| Amount: | $400 million
|
| Issue: | Senior notes
|
| Maturity: | Dec. 1, 2033
|
| Bookrunners: | Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC
|
| Senior co-managers: | BofA Securities, Inc., Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BMO Capital Markets Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC and Siebert Williams Shank & Co., LLC
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Mayer Brown LLP
|
| Counsel to underwriters: | Cahill Gordon & Reindel LLP
|
| Coupon: | 5.7%
|
| Price: | 99.924
|
| Yield: | 5.71%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps, par call starting Sept. 1, 2031
|
| Trade date: | Nov. 27
|
| Settlement date: | Nov. 30
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 160 bps area
|
| Cusip: | 695156AX7
|
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