Georgia-Pacific doubles note offering to $1 billion, issues talk, aims to price Thursday

By Paul A. Harris

St. Louis, Jan. 22 - Georgia Pacific Corp. doubled the sized of its senior notes offering (Ba2/BB+) to $1 billion from $500 million, according to a syndicate source.

The deal is expected to price Thursday afternoon.

At $1 billion the deal will be the biggest in more than a year. The last high-yield offering of that size was Owens-Brockway's offering of $1 billion senior secured notes priced on Jan. 16, 2002.

Georgia-Pacific's deal will be structured as senior notes in two tranches, one of seven-year bullets talked at 8 7/8%-9 1/8% and one of 10-year-non-call-five notes with price talk of 9¼%-9½%. Tranche sizes remain to be determined, the source told Prospect News.

Goldman, Sachs & Co. and Banc of America Securities are joint bookrunners on the Rule 144A/Regulation S deal.

The issuer is an Atlanta manufacturer of tissue, packaging, paper, building products, pulp and related chemicals.

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