Tembec plans roadshow for $375 million five-year secured notes

By Paul A. Harris

Portland, Ore., Sept. 16 – Tembec Industries Inc. plans to start a roadshow on Wednesday in New York for a $375 million offering of senior secured notes due December 2019 (B3/B-), according to a market source.

The roadshow moves to Boston on Thursday, to Canada on Friday and to the West Coast of the United States on Monday.

An investor call is scheduled to begin at 12:40 p.m. ET on Wednesday.

The Rule 144A and Regulation S for life deal is expected to price Sept. 23.

Deutsche Bank Securities Inc. is the left bookrunner. RBC Capital Markets is the joint bookrunner. CIBC World Markets and Imperial Capital are the co-managers.

The notes become callable after two years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period. The notes also feature a three-year 35% equity clawback and a 101% poison put.

The Montreal-based manufacturer of forest products plans to use the proceeds to repay debt, including its existing 11¼% secured notes.

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