WEPA sets initial talk in €550 million two-part notes offering

By Paul A. Harris

Portland, Ore., Nov. 27 – WEPA Group circulated initial price talk in its €550 million two-part offering of senior secured notes (B1/BB-) on Wednesday, according to market sources.

The deal features a tranche of eight-year fixed-rate notes, which are non-callable for three years. The notes come with initial talk in the 3¼% area.

The offering also includes a tranche of seven-year floating-rate notes, which are non-callable for one year. The notes come with initial talk in the Euribor plus 325 basis points area.

Tranche sizes remain to be determined.

HSBC is leading the deal.

The issuing entity is WEPA Hygieneprodukte GmbH, an affiliate of WEPA Group.

The Arnsberg, Germany-based producer and supplier of tissue products plans to use the proceeds to pay off its €450 million of 3¾% senior secured notes due 2024, as well as to finance the acquisition of its new de-inked production site in Chateau-Thierry, and to repay debt under its revolver. Proceeds will also be used for general corporate purposes, including potential expansion projects.

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