By Paul A. Harris
Portland, Ore., Dec. 3 – IPL Plastics price a $125 million issue of Intelligent Packaging Holdco Issuer LP senior PIK toggle notes due Jan. 15, 2026 (Caa2/CCC) at 99 to yield 9.246% on Thursday, according to market sources.
The notes pay a 9% cash coupon, which steps up by 75 basis points to 9¾% for PIK payments.
The cash coupon came on top of final coupon talk, which was at the wide end of the 8½% to 9% initial guidance. The issue price came on top of price talk.
The deal was heard to be 75% circled up by means of reverse inquiry, a trader said.
BofA Securities was at the left of a syndicate of bookrunners that also included Barclays, Deutsche Bank, BMO, NBC, CIBC, Credit Suisse, MUFG, RBC and TD.
The Quebec-based manufacturer of specialty rigid plastics plans to use the proceeds to pay a distribution to its sponsors.
| Issuer: | Intelligent Packaging Holdco Issuer LP
|
| Amount: | $125 million
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| Maturity: | Jan. 15, 2026
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| Securities: | Senior PIK toggle notes
|
| Bookrunners: | BofA Securities, Barclays, Deutsche Bank, BMO, NBC, CIBC, Credit Suisse, MUFG, RBC and TD
|
| Cash coupon: | 9%
|
| PIK coupon: | 9¾%
|
| Price: | 99
|
| Yield: | 9.246%
|
| Spread: | 884 bps
|
| First call: | Sept. 15, 2022 at 104.5
|
| Trade date: | Dec. 3
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| Settlement date: | Dec.8
|
| Ratings: | Moody's: Caa2
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| S&P: CCC
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% cash coupon, 75 bps step-up for PIK at 99
|
| Marketing: | Roadshow
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