Intertape Polymer sets talk in $400 million 6.5-year notes offering; pricing Wednesday

By Paul A. Harris

Portland, Ore., June 14 – Iris Holdings Inc. set wide-to-guidance price talk on Tuesday for a $400 million offering of 6.5-year senior notes (Caa2/CCC+) backing the buyout of Intertape Polymer Group Inc. by Clearlake Capital Group LP, according to market sources.

Official talk has the deal coming with a 10% coupon at an issue price of 83 to 85 to yield in the context of 13½% to 14%.

Although the coupon talk comes on top of initial guidance, price talk comes at a steep discount to original guidance in the low 90s, and yield talk comes well wide to initial guidance in the high-11% to low-12% area.

Books close at 11 a.m. ET on Wednesday, and the Rule 144A and Regulation S deal is expected to price thereafter.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Jefferies LLC, BMO Capital Markets Corp. and Golub Capital are leading the offering.

The notes come with three years of call protection.

Proceeds plus a $1.5 billion term loan will be used to help fund the buyout of the company by Clearlake Capital for C$40.50 per share in an all-cash transaction valued at about US$2.6 billion, including net debt. The transaction is expected to close in the third quarter of 2022.

Special purpose vehicle Iris Holdings will merge with Intertape Polymer upon completion of the buyout.

Intertape Polymer, based in Montreal and Sarasota, Fla., is a provider of packaging and protective solutions.

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