By Paul A. Harris
St. Louis, April 28 - Reynolds Group, issuing via three subsidiaries, priced $1 billion of eight-year senior notes (Caa1/B-/) at par to yield 8½% on Wednesday, according to an informed source.
The yield printed on top of price talk.
Credit Suisse ran the books.
Proceeds will be used to help fund the acquisitions of the Evergreen Packaging group of companies and the Whakatane Mill from Carter Holt Harvey Ltd.
Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.
| Issuers: | Reynolds Group Issuer LLC, Reynolds Group Issuer Inc. and Reynolds Group Issuer (Luxembourg) SA
|
| Amount: | $1 billion
|
| Maturity: | May 15, 2018
|
| Securities: | Senior notes
|
| Bookrunner: | Credit Suisse
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 509 bps
|
| Call features: | Callable on May 15, 2014 at 104.25, 102.125, par on and after May 15, 2016
|
| Trade date: | April 28
|
| Settlement date: | May 4
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8½% area
|
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