Reynolds Group sets price talk for $3 billion notes due April 2019

By Paul A. Harris

St. Louis, Oct. 5 - Reynolds Group Issuer Entities set price talk for its $3 billion dual-tranche offering of 8.5-year notes on Tuesday, according to an informed source.

A $1.5 billion tranche of senior secured notes (Ba3/BB) is talked with a yield in the 7¼% area.

Meanwhile, a $1.5 billion tranche of senior unsecured notes (Caa1/B) is talked with a yield in the 9¼% area.

The books close at noon ET on Wednesday.

Credit Suisse and HSBC are the joint bookrunners for the Rule 144A with registration rights offering.

ANZ is the joint lead manager.

The notes of both tranches come with four years of call protection.

Proceeds will be used to finance the acquisition of Pactiv Corp.

Reynolds is a Chicago-based manufacturer and supplier of consumer food and beverage packaging and storage products.

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