New Issue: Packaging Corp. sells $700 million 4.5% 10-year notes at 180 bps over Treasuries

By Aleesia Forni

Virginia Beach, Oct. 15 - Packaging Corp. of America sold $700 million 4.5% senior notes (Baa3/BBB/) on Tuesday with a spread of Treasuries plus 180 basis points, according to an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.735 to yield 4.533%.

BofA Merrill Lynch and Deutsche Bank Securities Inc. were the bookrunners.

Proceeds will be used to repay debt and partly fund the acquisition of Boise Inc.

The containerboard and corrugated products producer is based in Lake Forest, Ill.

Issuer:	Packaging Corp. of America
Amount:	$700 million
Description:	Senior notes
Maturity:	Nov. 1, 2023
Bookrunners:	BofA Merrill Lynch, Deutsche Bank Securities Inc.
Co-managers:	BMO Capital Markets Corp., Mitsubishi UFJ Securities (USA), Inc., PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., Williams Capital Group, LP, Citigroup Global Markets Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, BBVA Securities Inc., Rabo Securities USA, Inc., TD Securities (USA) LLC
Coupon:	4.5%
Price:	99.735
Yield:	4.533%
Spread:	Treasuries plus 180 bps
Make-whole call:	Treasuries plus 30 bps
Distribution:	SEC registered
Trade date:	Oct. 15
Settlement date:	Oct. 22
Ratings:	Moody's: Baa3
	Standard & Poor's: BBB

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