Fedrigoni ups note offering to €1.03 billion, indicates tranche sizes, affirms initial talk

By Paul A. Harris

Portland, Ore., Oct. 13 – Fiber Bidco SpA upsized its two-part offering of five-year senior secured notes (B2/B/BB-) to €1.025 billion from €875 million, according to market sources.

The deal, backing the buyout of Italian specialty paper manufacturer Fedrigoni by Bain Capital and BC Partners, is expected to feature €300 million to €350 million of fixed-rate notes with two years of call protection. Guidance sets out a yield of 11¾% to 12%, including an original issue discount. Earlier whisper was 11½% to 12% at a discount.

The offering is also expected to feature a €675 million to €725 million tranche of floating-rate notes with one year of call protection. Guidance sets a 600 basis points spread to Euribor at a discount in the 90 area, with no Euribor floor. The spread and price came on top of earlier indications.

The roadshow was scheduled to wrap up on Thursday, with the deal expected to price on Friday.

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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