WEPA Group marketing €550 million secured notes in two tranches

By Paul A. Harris

Portland, Ore., Nov. 25 – WEPA Group plans to sell €550 million of senior secured notes (expected ratings B1/BB-) in two tranches, according to market sources.

The deal is coming in tranches of eight-year fixed-rate notes with three years of call protection and seven-year floating-rate notes with one year of call protection.

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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