| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Riverwood International Corp. > News item |
Riverwood files for IPO, plans new term loan, senior notes
By Peter Heap
New York, May 3 - Riverwood Holding, Inc. filed a registration statement for an initial public offering of $350 million of its common stock and said it would also take out an additional term loan under its credit agreement and sell senior notes.
Proceeds of the stock, bank loan and note sales will be used to repay its outstanding senior notes and senior subordinated notes and part of the borrowings on its revolving credit facility, the Atlanta, Ga. paperboard company said.
Riverwood did not disclose the size of the new term loan or the note offering.
But the outstanding notes which it plans to redeem have a principal amount of $900 million, according to the registration statement filed with the Securities and Exchange Commission.
The debt is made up of $400 million 10 7/8% senior subordinated notes due 2008 and $500 million 10 5/8% senior notes due 2007.
Riverwood also has $250 million of 10¼% senior notes due 2006 outstanding which will be redeemed on May 23 using proceeds of a $250 million new term B loan drawn on April 23 along with $12 million drawn on the existing revolving credit facility (the new money borrowed totals more than $250 million because of fees, costs and expenses).
The company's revolver is $300 million size and on Dec. 31, 2001 there was $35 million outstanding. The senior secured credit facilities also include a $335 million term loan.
Riverwood also did not disclose underwriters for the note offering or the banks for the new loan.
Bookrunners for the IPO are Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. Deutsche Bank Securities Inc., JP Morgan Securities Inc. and Salomon Smith Barney Inc. are co-managers.
The recent five-year term B was via Deutsche Bank and JPMorgan Chase Bank and priced at Libor plus 250 basis points.
The various financings do not depend on each other, Riverwood added.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.