Pactiv Evergreen talks $500 million seven-year notes at 4½% area; pricing Friday

By Abigail W. Adams

Portland, Me., Sept. 17 – Pactiv Evergreen Group Issuer Inc. plans to price $500 million seven-year senior secured notes in a Friday drive-by with price talk for a yield in the 4½% area, according to a market source.

Initial guidance was for a yield in the 4½% to 4¾% area.

Books close at 2 p.m. ET.

Credit Suisse Securities (USA) LLC (lead left) and HSBC Securities (USA) Inc. are joint bookrunners for the Rule 144A and Regulation S offering.

The notes are non-callable for three years.

There is an equity clawback of 40% for three years and a poison put of 101.

Proceeds, together with proceeds from a new term loan and cash on hand, will be used to finance the acquisition of Fabri-Kal and refinance tranche B-1 of its term loans.

In the event the Fabri-Kal acquisition is not completed, proceeds will be used to refinance other term loans.

Pactiv Evergreen is a Lake Forest, Ill.-based fresh food and beverage packaging manufacturer.

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