By Cristal Cody
Tupelo, Miss., March 1 – WestRock Co. priced $1.2 billion of guaranteed senior notes (Baa2/BBB) in two tranches on Thursday on the tight side of guidance, according to a market source and a news release.
The $600 million tranche of 3.75% seven-year notes priced with a spread of 105 basis points over Treasuries.
WestRock sold $600 million of 4% 10-year notes at a Treasuries plus 120 bps spread.
BofA Merrill Lynch, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC were the lead managers.
The notes are guaranteed by certain WestRock subsidiaries.
Proceeds will be used to finance a portion of the company’s acquisition of KapStone Paper and Packaging Corp. and for general corporate purposes.
WestRock is an Atlanta-based paper and packaging manufacturer.
| Issuer: | WestRock Co.
|
| Guarantors: | Certain WestRock subsidiaries
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC
|
| Trade date: | March 1
|
| Settlement date: | March 6
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Seven-year notes
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2025
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2028
|
| Coupon: | 4%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps area
|
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