IPL Plastics talks $125 million PIK toggle notes with 9% cash coupon at 99; pricing Thursday

By Paul A. Harris

Portland, Ore., Dec. 2 – IPL Plastics set price talk on Intelligent Packaging Holdco Issuer LP’s $125 million offering of senior PIK toggle notes due Jan. 15, 2026 (expected ratings Caa2/CCC), according to market sources.

Talk has the deal coming with a 9% cash coupon at 99. The coupon steps up by 75 basis points for PIK payments. Final cash coupon talk comes wide to the 8½% to 9% initial guidance. Discount talk comes on top of initial guidance.

Books close at 10:30 a.m. ET on Thursday.

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

The Rule 144A and Regulation S for life notes become callable after Sept. 15, 2022 at 104.5, an increase from the original first call premium of 103. They feature a 40% equity clawback at par plus the coupon during the non-call period and a 101% poison put.

The Quebec-based manufacturer of specialty rigid plastics plans to use the proceeds to pay a distribution to its sponsors.

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