Kruger Products plans roadshow for C$150 million seven-year notes

By Cristal Cody

Prospect News, July 18 - Kruger Products LP plans to hold a roadshow for an offering of about C$150 million of seven-year senior notes (expected ratings /B/DBRS: BB), an informed bond source said Monday.

The roadshow starts on Wednesday in Montreal and ends on July 25 in Toronto.

Scotia Capital Inc. is the bookrunner. Co-managers are National Bank Financial Inc., RBC Capital Markets Corp., TD Securities Inc., Bank of America Merrill Lynch, CIBC World Markets Inc., Desjardins Securities Inc., HSBC Capital (Canada) Inc. and Laurentian Bank Securities, Inc.

The notes are due in 2018 and are non-callable for four years. The offering includes a three-year 35% equity clawback and a 101% poison put. The deal also has a Canada call at 50 basis points over the Canadian benchmark.

The notes are guaranteed by Kruger Products (USA) Inc. and Grupo Tissue de Mexico.

Proceeds will be used to refinance the company's syndicated credit facility and for general corporate purposes.

Kruger is Canada's leading tissue products producer, with brands that include Cashmere, Purex and Scotties. The company is a subsidiary of Montreal-based pulp and paper producer Kruger Inc.

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