Recordati talks €1.28 billion two-part notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., Oct. 12 – Recordati SpA set price talk in its €1.28 billion two-part offering of seven-year senior secured notes (expected ratings B2/B), according to market sources.

The deal features a tranche of fixed-rate notes with three years of call protection, talked in the 6¾% area.

The fixed tranche is going well and poised to come at 6¾%, an investor said on Friday morning.

Talk on the fixed-rate tranche widened over the course of the week, as the deal was being shopped. Early guidance was 6% to 6½%, with ensuing indications coming at 6½% to 6¾%.

A tranche of floating-rate notes, which come with one year of call protection, is talked to price with a spread to Euribor in the 625 basis points area, at par.

Final tranche sizes remain to be announced.

The deal is set to price on Friday.

Joint global coordinator Deutsche Bank will bill and deliver. Credit Suisse and Jefferies are also joint global coordinators.

The issuing entity is Newco Rossini Acquisition Sarl, a special purpose vehicle controlled by CVC Capital Partners, which intends to use the proceeds from the bond sale to help fund its acquisition of a 51.8% stake in the Milan-based pharmaceutical company.

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