New Issue: Packaging Corp. prices $400 million 3.65% 10-year notes at Treasuries plus 127 bps

By Aleesia Forni

Virginia Beach, Sept. 2 – Packaging Corp. of America sold $400 million of 3.65% senior notes (Baa3/BBB/) due 2024 with a spread of Treasuries plus 127 basis points on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The notes sold at the tight end of talk.

Pricing was at 99.716 to yield 3.684%.

BofA Merrill Lynch, Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are the bookrunners.

Proceeds will be used to repay a portion of the company’s term loan due October 2018.

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

Issuer:	Packaging Corp. of America
Amount:	$400 million
Description:	Senior notes
Maturity:	Sept. 15, 2024
Bookrunners:	BofA Merrill Lynch, Wells Fargo Securities LLC, Deutsche Bank Securities Inc.
Co-managers:	BMO Capital Markets Corp., J.P. Morgan Securities LLC, MUFG, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., Williams Capital Group, LP, BB&T Capital Markets, BBVA Securities Inc., Citigroup Global Markets Inc., Rabo Securities USA Inc., TD Securities (USA) LLC
Coupon:	3.65%
Price:	99.716
Yield:	3.684%
Spread:	Treasuries plus 127 bps
Make-whole call:	Treasuries plus 20 bps prior to June 15, 2024, then callable at par
Trade date:	Sept. 2
Settlement date:	Sept. 5
Ratings:	Moody’s: Baa3
	Standard & Poor's: BBB
Price talk:	Treasuries plus 130 bps area, tightened from Treasuries plus 145 bps area

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