By Andrea Heisinger
Omaha, March 19 - Packaging Corp. of America priced $150 million 6.5% 10-year senior notes Wednesday to yield Treasuries plus 310 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB) priced at 99.959 to yield 6.506%. They have a make-whole redemption option of Treasuries plus 50 bps.
Interest will be payable semiannually.
The notes feature a change-of-control put at 101%.
Bookrunners were Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.
Co-managers were Banc of America Securities LLC, BMO Capital Markets Corp., NatCity Investments Inc., Wachovia Capital Markets, LLC, Wedbush Morgan Securities Inc. and the Williams Capital Group, LP.
Proceeds will be used to repay outstanding senior notes on Aug. 1, 2008. Prior to this, proceeds will be invested in short-term interest-bearing obligations.
The containerboard and corrugated products company is based in Lake Forest, Ill.
| Issuer: | Packaging Corp. of America
|
| Issue: | Senior notes
|
| Amount: | $150 million
|
| Maturity: | March 15, 2018
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities Inc.
|
| Co-managers: | Banc of America Securities LLC, BMO Capital Markets Corp., NatCity Investments Inc., Wachovia Capital Markets, LLC, Wedbush Morgan Securities Inc., the Williams Capital Group, LP
|
| Coupon: | 6.5%
|
| Price: | 99.959
|
| Yield: | 6.506%
|
| Spread: | Treasuries plus 310 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | March 19
|
| Settlement date: | March 25
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
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