By Paul A. Harris
St. Louis, May 14 - Rock-Tenn Co. priced a $100 million add-on to its 9¼% senior notes due March 15, 2016 (Ba3/BB-) at par to yield 9¼% on Thursday, according to an informed source.
The quick-to-market deal was talked earlier in the day at par, and came on top of that talk.
Banc of America Securities LLC, Wachovia Securities, SunTrust Robinson Humphrey and JP Morgan were joint bookrunners for the Rule 144A deal.
Proceeds, together with cash on hand, if needed, and borrowings under an amended and restated credit facility, will be used to purchase a portion of the company's 8.2% notes due August 2011.
The original $200 million issue of 9¼% notes priced at 99.30 to yield 9 3/8% on Feb. 28, 2008.
The total issue size is $300 million following Thursday's add-on transaction.
Rock-Tenn is a Norcross, Ga., manufacturer of packaging products, merchandising displays and bleached and recycled paperboard.
| Issuer: | Rock-Tenn Co.
|
| Amount: | $100 million
|
| Maturity: | March 15, 2016
|
| Security description: | Add-on to 9¼% senior notes due March 15, 2016
|
| Bookrunners: | Banc of America Securities LLC, Wachovia Securities, SunTrust Robinson Humphrey, JP Morgan
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 664 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until March 15, 2012, then at 104.688, 102.344, par on and after March 15, 2014
|
| Equity clawback: | Until March 15, 2011 for 35% at 109.25
|
| Trade date: | May 14
|
| Settlement date: | May 29 with accrued interest
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A
|
| Price talk: | Par
|
| Original issue: | $200 million priced at 99.30 to yield 9 3/8% on Feb. 28, 2008
|
| Total issue size: | $300 million
|
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