By Cristal Cody
Tupelo, Miss., Nov. 27 – WestRock Co. subsidiary WRKCo Inc. priced $1.5 billion of senior notes (Baa2/BBB) in two tranches on Tuesday tighter than initial guidance, according to a market source.
A $750 million tranche of 4.65% notes due March 15, 2026 priced with a spread of 170 basis points over Treasuries. The notes were initially talked to price with a Treasuries plus 175 bps spread.
WestRock sold $750 million of 4.9% notes due March 15, 2029 at a Treasuries plus 185 bps spread, tighter than initial guidance at Treasuries plus 190 bps.
BofA Merrill Lynch, HSBC Securities (USA) Inc., Rabo Securities USA, Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC were the lead managers.
Proceeds will be used to repay a portion of the credit facilities used to finance the acquisition of KapStone Paper and Packaging Corp.
WestRock is an Atlanta-based paper and packaging manufacturer.
| Issuer: | WRKCo Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, HSBC Securities (USA) Inc., Rabo Securities USA, Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
|
| Trade date: | Nov. 27
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2026
|
| Coupon: | 4.65%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 175 bps
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2029
|
| Coupon: | 4.9%
|
| Spread: | Treasuries plus 185 bps
|
| Price guidance: | Treasuries plus 190 bps
|
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