By Andrea Heisinger
New York, June 21 - Packaging Corp. of America sold $400 million of 3.9% 10-year senior notes on Thursday at a spread of Treasuries plus 230 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB/) were priced at 99.911 to yield 3.911%.
There is a make-whole call at Treasuries plus 35 bps until March 15, 2022 and a par call after that date. The notes feature a change-of-control put at 101%.
Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the bookrunners.
Co-managers were BMO Capital Markets Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA), Inc., PNC Capital Markets LLC and Williams Capital Group, LP.
Proceeds, together with cash on hand and/or borrowings under a revolving credit facility, will be used to redeem or acquire and retire $400 million of 5.75% notes due 2013.
The containerboard and corrugated product producer is based in Lake Forest, Ill.
| Issuer: | Packaging Corp. of America
|
| Issue: | Senior notes
|
| Amount: | $400 million
|
| Maturity: | June 15, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Wells Fargo Securities LLC
|
| Co-managers: | BMO Capital Markets Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA), Inc., PNC Capital Markets LLC, Williams Capital Group, LP
|
| Coupon: | 3.9%
|
| Price: | 99.911
|
| Yield: | 3.911%
|
| Spread: | Treasuries plus 230 bps
|
| Call: | Make-whole at Treasuries plus 35 bps until March 15, 2022, par call after
|
| Change-of-control put: | 101%
|
| Trade date: | June 21
|
| Settlement date: | June 26
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
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