Atlantis Plastics postpones $125 million bond offering, cites market conditions

By Paul A. Harris

St. Louis, Feb. 3 - Atlantis Plastics Inc. postponed an offering of $125 million of seven-year senior subordinated notes (Caa1/CCC+) on Thursday, citing market conditions, according to market sources.

A source told Prospect News that the Atlanta-based manufacturer of specialty plastic films and custom molded plastic products will seek to obtain a $220 million credit facility as an alternative to refinancing its senior secured debt and funding a special dividend to shareholders.

Bear Stearns & Co. had been leading the deal.

In the run-up to Thursday, market sources told Prospect News that the company had downsized the deal to $105 million and had restructured it into a senior secured note.

One source said that the original pro forma on the bond deal was a yield of approximately 9%, which the company had pushed out to the 9½% area, before pulling the offering.

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