Poland’s CanPack selling $1.1 billion equivalent notes in two parts

By Paul A. Harris

Portland, Ore., Oct. 13 – Poland-based CanPack SA is attempting to place $1.1 billion of senior notes (expected ratings Ba2/BB) in two tranches, according to market sources.

The deal, which is playing to high-yield and emerging markets accounts in Europe and the United States, includes euro-denominated seven-year notes callable after three years at par plus 50% of the coupon and dollar-denominated five-year notes, which become callable after two years at par plus 50% of the coupon.

Tranche sizes remain to be determined.

Initial talk on the dollar-denominated notes is in the mid-to-high 3% area, a trader said.

The roadshow for the Rule 144A and Regulation S for life offering wraps up on Thursday.

Global coordinator and physical bookrunner Citigroup will bill and deliver for the euro-denominated notes. Global coordinator and physical bookrunner Wells Fargo will bill and deliver for the dollar-denominated notes.

BNP Paribas is a passive bookrunner. CaixaBank and PKO BP are the co-managers.

The co-issuer is Eastern PA Land Investment Holding LLC, representing CanPack's operations in the United States.

The metal container supplier, which is based in Krakow, Poland, plans to use the proceeds to repay certain amounts outstanding under its revolver, to redeem its private placement notes and for general corporate purposes, including capital expenditure requirements to construct a new plant in Pennsylvania.

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