By Paul A. Harris
Portland, Ore., Dec. 4 - Reynolds Group priced a $590 million issue of senior subordinated notes due June 15, 2017 (Caa2/CCC+/) at par to yield 6% on Wednesday, an informed source said.
The yield printed at the tight end of the 6% to 6 1/8% yield talk.
Credit Suisse Securities (USA) LLC was the bookrunner.
The Auckland, New Zealand-based food and beverage packaging company is issuing via its Beverage Packaging Holdings (Luxembourg) II SA and Beverage Packaging Holdings II Issuer Inc. units.
The company plans to use the proceeds to refinance its existing 9½% euro-denominated senior subordinated notes.
| Issuers: | Beverage Packaging Holdings (Luxembourg) II SA and Beverage Packaging Holdings II Issuer Inc.
|
| Amount: | $590 million
|
| Maturity: | June 15, 2017
|
| Securities: | Senior subordinated notes
|
| Bookrunner: | Credit Suisse Securities (USA) LLC
|
| Lead manager: | HSBC Securities (USA) Inc.
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 513 bps
|
| Call: | Callable after June 15, 2016 at par
|
| Equity clawback: | 40% at 106 until June 15, 2016
|
| Trade date: | Dec. 4
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6% to 6 1/8%
|
| Marketing: | Quick to market |
|
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