Reynolds Group to price upsized $3.25 billion eight-year secured notes to yield 5¾%

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Sept. 14 - Reynolds Group Issuer Inc. and Reynolds Group Issuer (Lux.) SA are pricing an upsized $3.25 billion offering senior secured notes due 2020 on Friday, according to a market source.

Price talk is set at 5¾%.

Credit Suisse is the bookrunner for the Rule 144A with registration rights transaction.

The notes are callable in three years at par plus 75% of the coupon.

Additionally, $1.55 billion of the proceeds will be used to repay the company's term loan, $1.2 billion will be used to refinance the 7¾% dollar-denominated secured notes due 2016 and $500 million will be used for cash for the balance sheet.

An investor call took place at 10:30 a.m. ET, and books close at 1:30 p.m. ET.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

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