By Paul A. Harris
Portland, Ore., June 13 – Reynolds Group Holdings Ltd. priced $2.9 billion of high-yield notes in three tranches on Monday, according to an informed source.
The transaction included $750 million of senior secured floating-rate notes (B1/B+) which priced at 99 with a coupon of Libor plus 350 basis points. The spread came at the tight end of the Libor plus 350 to 375 bps spread talk. The discount came at the cheap end of the 99 to 99.5 price talk.
The $2.1 billion overall amount of secured paper also included $1.35 billion of seven-year senior secured fixed-rate notes (B1/B+) which priced at par to yield 5 1/8%. The yield printed in the middle of the 5% to 5¼% yield talk.
Credit Suisse Securities (USA) LLC was the sole bookrunner for the secured notes tranches.
Reynolds also priced $800 million of eight-year senior unsecured notes (Caa2/CCC+) at par to yield 7%. The yield printed at the tight end of the 7% to 7¼% yield talk.
Credit Suisse and HSBC were the joint bookrunners for the unsecured tranche.
The issuing entities are Reynolds Group Issuer SA, Reynolds Group Issuer Inc. and Reynolds Group Issuer LLC, wholly owned subsidiaries of Reynolds Group Holdings.
The Auckland, New Zealand-based food and beverage packaging manufacturer plans to use the proceeds to refinance its existing notes including its 7 1/8% senior secured notes, 7 7/8% senior secured notes, 8½% senior notes, 9% senior notes, 9 7/8% senior notes and 6% senior subordinated notes.
| Issuer: | Reynolds Group Issuer SA, Reynolds Group Issuer Inc. and Reynolds Group Issuer LLC
|
| Amount: | $2.9 billion
|
| Trade date: | June 13
|
| Settlement date: | June 27
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick-to-market
|
|
|
| Senior secured floating-rate notes
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| Amount: | $750 million
|
| Issue: | Senior secured notes
|
| Maturity: | July 15, 2021
|
| Bookrunner: | Credit Suisse
|
| Coupon: | Libor plus 350 bps
|
| Price: | 99
|
| First call: | July 15, 2017 at 102
|
| Ratings: | Moody’s: B1
|
| Standard & Poor’s: B+
|
| Price talk: | Libor plus 350-375 bps at 99 to 99.5
|
|
|
| Senior secured fixed-rate notes
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| Amount: | $1.35 billion
|
| Issue: | Senior secured notes
|
| Maturity | July 15, 2023
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| Bookrunner: | Credit Suisse
|
| Coupon: | 5 1/8%
|
| Price: | Par
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| Yield: | 5 1/8%
|
| Spread: | 372 bps
|
| First call: | July 15, 2019 at 102.563
|
| Ratings: | Moody’s: B1
|
| Standard & Poor’s: B+
|
| Price talk: | 5% to 5¼%
|
|
|
| Senior unsecured notes
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| Amount: | $800 million
|
| Issue: | Senior notes
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| Maturity: | July 15, 2024
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| Bookrunners: | Credit Suisse, HSBC
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| Coupon: | 7%
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| Price: | Par
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| Yield: | 7%
|
| Spread: | 549 bps
|
| First call: | July 15, 2019 at 103.5
|
| Ratings: | Moody’s: Caa2
|
| Standard & Poor’s: CCC+
|
| Price talk: | 7% to 7¼%
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