Rock-Tenn expected to start roadshow in mid-February for $400 million notes

By Paul A. Harris and Sara Rosenberg

St. Louis, Jan. 30 - Rock-Tenn Co. is expected to begin a roadshow in mid-February for its $400 million offering of senior notes, a market source told Prospect News on Wednesday.

Pricing of the notes would follow in late February or in early March.

The notes are backed by a bridge loan from Wachovia Bank, Bank of America and SunTrust Bank.

Meanwhile a bank meeting took place on Wednesday for Rock-Tenn's $1 billion credit facility.

Proceeds from the bonds and bank loan will be used to fund the acquisition of Southern Container Corp., to refinance the company's existing credit facilities and provide in excess of $200 million of undrawn capacity.

Rock-Tenn is buying Southern Container, a Hauppauge, N.Y., privately held containerboard manufacturing and corrugated packaging business, for $851 million in cash.

Rock-Tenn is a Norcross, Ga., manufacturer of packaging products, merchandising displays and bleached and recycled paperboard.

© 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.