By Abigail W. Adams
Portland, Me., Sept. 17 – Pactiv Evergreen Group Issuer Inc. priced $500 million seven-year senior secured notes (B1/B+) in a Friday drive-by at par with a coupon of 4 3/8%, according to a market source.
Pricing came at the tight end of talk for a yield in the 4½% area. Initial guidance was for a yield in the 4½% to 4¾% area.
Credit Suisse Securities (USA) LLC (lead left) and HSBC Securities (USA) Inc. were joint bookrunners for the Rule 144A and Regulation S offering.
The notes are non-callable for three years.
There is an equity clawback for up to 40% of the issue 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.
| Issuer: | Pactiv Evergreen Group Issuer Inc.
|
| Amount: | $500 million
|
| Maturity: | Oct. 15, 2028
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunner: | HSBC Securities (USA) Inc.
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Spread: | 321 bps
|
| Call protection: | Three years
|
| Equity clawback: | For up to 40% of issue for three years
|
| Trade date: | Sept. 17
|
| Settlement date: | Sept. 24
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4½% area
|
| Marketing: | Quick to market
|
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