New Issue: Reynolds Group prices upsized $3.25 billion eight-year notes at par to yield 5¾%

By Paul A. Harris

Portland, Ore., Sept. 14 - Reynolds Group priced a massively upsized $3.25 billion issue of eight-year senior secured notes (B1/B+/) at par to yield 5¾% in a quick-to-market deal on Friday, according to an informed source.

The issue was upsized from $1 billion, and the yield printed on top of yield talk.

Credit Suisse Securities (USA) LLC was the bookrunner.

Of the proceeds, $1.55 billion will go to repay the company's term loan, $1.2 billion will go to refinance its 7¾% dollar-denominated secured notes due 2016 and $500 million will go as cash to the balance sheet.

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., Reynolds Group Issuer (Luxembourg) SA
Amount:	$3.25 billion, increased from $1 billion
Maturity:	Oct. 15, 2020
Securities:	Senior secured notes
Bookrunner:	Credit Suisse Securities (USA) LLC
Lead manager:	HSBC Securities (USA) Inc.
Coupon:	5¾%
Price:	Par
Yield:	5¾%
Spread:	433 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2015, then callable at 104.313, 102.875, 101.438, par on and after Oct. 15, 2018
Equity clawback:	40% at 105.75 until Oct. 15, 2015
Change-of-control put:	101%
Trade date:	Sept. 14
Settlement date:	Sept. 28
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	5¾%
Marketing:	Quick to market

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