Turning Point talks $250 million five-year secured notes at 5¾% area; pricing Wednesday

By Paul A. Harris

Portland, Ore., Feb. 2 – Turning Point Brands, Inc. talked its $250 million offering of five-year senior secured notes (Ba3/BB) to yield in the 5¾% area, according to market sources.

The deal is heard to be going well, and pricing is expected to tighten, a bond trader said.

Books close at 11 a.m. ET on Wednesday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Joint bookrunner Barclays will bill and deliver. Fifth Third Securities Inc. and Regions Securities Inc. are also joint bookrunners.

The notes come with two years of call protection. 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 two-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Louisville, Ky.-based tobacco products supplier plans to use the proceeds to repay its 2018 credit facility and for general corporate purposes.

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