IPL Plastics upsizes to $485 million, revises offering; eight-year secured notes to price Tuesday

By Paul A. Harris

Portland, Ore., Aug. 25 – IPL Plastics Inc. upsized its offering of eight-year senior secured notes (B3/B) to $485 million from $450 million and relaunched the deal on a timeline that has it pricing Tuesday afternoon, according to market sources.

A revision to the structure sees call protection decreased to two years from three years. The notes will become callable after two years at par plus 50% of the coupon.

As the market awaits final price talk, initial guidance had the notes coming to yield in the high 6% area to 7%.

The Rule 144A and Regulation S for life deal backs the acquisition of the Montreal-based rigid plastic packaging manufacturer by Madison Dearborn Partners, LLC.

BofA, Barclays, Deutsche Bank, BMO, CIBC, Credit Suisse, MUFG, RBC and TD are the joint bookrunners.

The co-issuers are Intelligent Packaging Ltd. Finco Inc. and Intelligent Packaging Ltd. Co-Issuer, LLC.

Proceeds, together with cash on hand, equity contributions from funds affiliated with Madison Dearborn and the reinvestment of certain proceeds by Caisse de depot et placement du Quebec, are intended to be used to consummate the acquisition. The additional proceeds resulting from the $35 million upsizing of the deal will used to reduce the sizes of the equity contribution and the reinvestment.

On July 29, IPL Plastics announced that it was being taken private by Madison Dearborn, which is purchasing the company’s shares in a transaction valued at C$555 million on an equity basis and C$981 million on an enterprise basis.

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