Canpack sets tranche sizes, final talk in $1.1 billion equivalent two-part deal; pricing Thursday

By Paul A. Harris

Portland, Ore., Oct. 15 – Poland-based Canpack SA set tranche sizes and final tight-to-talk pricing in its $1.1 billion two-part offering of senior notes (Ba2/BB), according to market sources.

The deal, which is playing to high-yield and emerging markets accounts in Europe and the United States, includes €600 million seven-year notes callable after three years at par plus 50% of the coupon, with pricing set at 2 3/8%, tight to talk in the 2½% area.

The offering also includes $400 million five-year notes callable after two years at par plus 50% of the coupon, with pricing set at 3 1/8%, tight to talk in the 3¼% area. Initial talk on the dollar notes was in the mid-to-high 3% area.

The Rule 144A and Regulation S for life deal is expected to price on Thursday.

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