By Paul A. Harris
Portland, Ore., Feb. 9 - Reynolds Group priced a massively upsized $1.25 billion add-on to its 9 7/8% senior notes due Aug. 15, 2019 (Caa1/B-/) at par to yield 9 7/8% on Thursday, according to a syndicate source.
The reoffer price came on top of price talk.
Credit Suisse ran the books for the quick-to-market tap, which was upsized from $750 million.
Proceeds will be used to redeem Pactiv's unsecured notes due 2012, Graham Packaging's unsecured notes due 2017 and 2018, and Graham Packaging's subordinated notes due 2014 and for general corporate purposes. The additional proceeds from the upsizing will be used for general corporate purposes.
Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.
The original $1 billion issue priced at 99.318 to yield 10% on July 26, 2011.
| Issuers: | Reynolds Group Issuer LLC, Reynolds Group Issuer Inc. and Reynolds Group Issuer (Luxembourg) SA
|
| Amount: | $1.25 billion, increased from $750 million
|
| Maturity: | Aug. 15, 2019
|
| Securities: | Add-on to 9 7/8% senior notes due Aug. 15, 2019
|
| Bookrunner: | Credit Suisse Securities (USA) LLC
|
| Lead manager: | HSBC Securities (USA) Inc.
|
| Coupon: | 9 7/8%
|
| Price: | Par
|
| Yield: | 9 7/8%
|
| Spread: | 837 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2015, then callable at 104.938, 102.469, par on and after Aug. 15, 2017
|
| Equity clawback: | 35% at 109.875 until Aug. 15, 2014
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | Par
|
| Original issue: | $1 billion priced at 99.318 to yield 10% on July 26, 2011
|
| Total issue size: | $2.25 billion
|
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