By Paul A. Harris
St. Louis, June 20 - Rexam plc placed €750 million of 60-year subordinated hybrid securities (Ba2/BB+) at a 190 basis point spread to mid-swaps on Wednesday, according to an informed source.
Price talk was the mid-swaps plus 200 bps area.
The notes, which priced at an original issue discount of 99.54, have an initial coupon of 6¾% and a yield to maturity of 6.815%.
Barclays Capital and Citigroup were the underwriters.
Proceeds, in addition to proceeds from an offering of 58,354,700 new ordinary shares (representing 9.99% of Rexam's issued ordinary share capital prior to the placing), and proceeds from the sale of Rexam's glass business, will be used to fund the $1.825 billion acquisition of OI Plastic Products FTS Inc.
Rexam is a consumer packaging beverage can manufacturer based in London.
| Issuer: | Rexam plc
|
| Amount: | €750 million
|
| Maturity: | June 29, 2067
|
| Security description: | Subordinated hybrid securities
|
| Bookrunners: | Barclays Capital, Citigroup
|
| Coupon: | 6¾% until call date
|
| Spread to mid-swaps: | 190 bps
|
| Price: | 99.54
|
| Yield: | 6.815%
|
| Call date: | June 29, 2017
|
| Trade date: | June 20
|
| Settlement date: | June 29
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Price talk: | Mid-swaps plus 200 bps area
|
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