By Paul A. Harris
St. Louis, Dec. 4 - Georgia-Pacific Corp. priced an upsized $500 million of senior notes due Jan. 15, 2024 (Ba3/BB+) at par Thursday to yield 8%.
The deal was doubled from the planned size of $250 million. Price talk was for a yield in the 8% area.
Citigroup, Deutsche Bank Securities and UBS Investment Bank ran the books on the Rule 144A/Regulation S offering. The co-managers were Banc of America Securities, Goldman Sachs & Co., JP Morgan and Merrill Lynch & Co.
Proceeds will be used to repay bank debt.
The Atlanta-based company manufactures tissue, packaging, paper, building products, pulp and related chemicals.
| Issuer: | Georgia-Pacific Corp.
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| Amount: | $500 million (increased from $250 million)
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| Maturity: | Jan. 15, 2024
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| Security description: | Senior notes
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| Bookrunners: | Citigroup, Deutsche Bank Securities, UBS Investment Bank
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| Co-managers: | Banc of America Securities, Goldman Sachs & Co., JP Morgan, Merrill Lynch & Co.
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| Coupon: | 8%
|
| Price: | Par
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| Yield: | 8%
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| Spread: | 284 basis points over 30-year Treasury
|
| Call: | Treasuries plus 50 basis points make-whole call
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| Settlement date: | Dec. 11
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| Ratings: | Moody's: Ba3
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| Standard & Poor's: BB+
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| Price talk: | 8% area
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