Italy’s Fedrigoni circulates initial guidance on €875 million two-part secured notes offering

By Paul A. Harris

Portland, Ore., Oct. 11 – Fiber Bidco SpA began a roadshow on Monday for an €875 million two-part offering of five-year senior secured notes (B2/B/BB-) backing the buyout of Italian specialty paper manufacturer Fedrigoni by Bain Capital and BC Partners, according to market sources.

The deal includes fixed-rate notes with two years of call protection at initial guidance of 11½% to 12% and floating-rate notes with one year of call protection at initial guidance of Euribor plus 600 basis points at OID 90.

The roadshow runs through Thursday, with the deal set to price thereafter.

Goldman Sachs, IMI-Intesa, Morgan Stanley, Santander, Nomura, UniCredit and BPER Banca are the leads.

The Milan-based company plans to use the proceeds plus a €150 million term loan A, a €150 million revolver, €584 million of sponsor equity and a €308 million vendor loan to fund the buyout, as well as to finance the acquisition of Istanbul, Turkey-based self-adhesive PVC manufacturer Unifol, and to repay debt.

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