By Paul A. Harris
Portland, Ore., Jan. 27 - Reynolds Group Issuer Entities doubled the size of its two-part offering of 10-year notes to $2 billion on Thursday, doubling the sizes of both the secured and unsecured tranches, according to an informed source.
The Chicago-based food packaging company priced an upsized $1 billion tranche of senior secured notes (Ba3/BB/) at par to yield 6 7/8%.
The secured tranche-size was doubled from $500 million, and the yield printed at the tight end of the 6 7/8% to 7% price talk.
Reynolds also priced an upsized $1 billion tranche of senior unsecured notes (Caa1/B/) at par to yield 8¼%.
The unsecured tranche was also upsized from $500 million and also priced at the tight end of price talk, which was 8¼% to 8 3/8%.
Credit Suisse was the bookrunner for the quick-to-market deal, the overall size of which was doubled from $1 billion.
The company will use the proceeds to pay down its existing term loan D.
| Issuer: | Reynolds Group Issuer Entities
|
| Amount: | $2 billion, increased from $1 billion
|
| Maturity: | Feb. 15, 2021
|
| Bookrunner: | Credit Suisse Securities
|
| Call protection: | Five years
|
| Trade date: | Jan. 27
|
| Settlement date: | Feb. 1
|
| Distribution: | Rule 144A with registration rights
|
| Marketing: | Quick to market
|
|
|
| Senior secured notes
|
| Amount: | $1 billion, increased from $500 million
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 533 bps
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Price talk: | 6 7/8% to 7%
|
|
|
| Senior unsecured notes
|
| Amount: | $1 billion, increased from $500 million
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 490 bps
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 8¼% to 8 3/8%
|
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