Published on 1/23/2003 in the Prospect News High Yield Daily.
New Issue: Georgia-Pacific notes upsized to $1.5 billion
By Paul A. Harris
St. Louis, Jan. 23 - Georgia-Pacific Corp. upsized its offering of senior notes (Ba2/BB+) to $1.5 billion, 50% more than the previously marketed size of $1 billion and three times the originally announced $500 million.
Goldman Sachs & Co. and Banc of America Securities were the bookrunners for the Rule 144A offering.
The Atlanta paper and building products company priced $700 million of 8 7/8% senior notes due Feb. 1, 2010 at 99.360 to yield 9%, according to a syndicate source. Price talk on the seven-year bullets was 8 7/8%-9 1/8%.
Georgia-Pacific also priced $800 million of senior notes due Feb. 1, 2013 at par to yield 9 3/8%. Price talk on the 10-year-non-call-five notes was 9¼%-9½%.
Proceeds will be used to repay amounts outstanding under a capital markets bridge facility and reduce borrowings on its revolving credit facility.
| Issuer: | Georgia-Pacific Corp.
|
| Amount: | $1.5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Goldman Sachs, Banc of America Securities (joint)
|
| Settlement date: | Jan. 30, 2003 (T+5)
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
|
|
| Seven-year tranche
|
| Amount: | $700 million
|
| Maturity | Feb. 1, 2010
|
| Coupon: | 8 7/8%
|
| Price: | 99.360
|
| Yield: | 9%
|
| Spread: | 548 basis points
|
| Call features: | Non-callable
|
| Equity clawback: | Until Feb. 1, 2006 for 35% at 108.875
|
| Rule 144A Cusip: | 373298BW7
|
| Price talk: | 8 7/8%-9 1/8%
|
|
|
| Ten-year tranche
|
| Amount: | $800 million
|
| Maturity: | Feb. 1, 2013
|
| Coupon: | 9 3/8%
|
| Price: | Par
|
| Yield: | 9 3/8%
|
| Spread: | 543 basis points
|
| Call features: | Callable on Feb. 1, 2008 at 104.688, 103.125, 101.563, par on Feb. 1, 2011 and thereafter
|
| Equity clawback: | Until Feb. 1, 2006 for 35% at 109.375
|
| Rule 144A Cusip: | 373298BY3
|
| Price talk: | 9¼%-9½%
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
