Georgia-Pacific talks $1 billion two-part note offering

By Paul A. Harris

St. Louis, Dec. 12 - Georgia-Pacific Corp. put out price talk on both tranches of its $1 billion offering of senior guaranteed notes (Ba3/B) on Tuesday, according to market sources.

A tranche of notes due January 2015 that is non-callable for four years is talked at the 7% area.

Meanwhile, a tranche of notes due January 2017 that is non-callable for five years is talked at the 7¼% area.

Tranche sizes remain to be determined.

Pricing is expected on Wednesday.

Banc of America Securities LLC, Citigroup and Deutsche Bank Securities are joint bookrunners, with Banc of America Securities as the left lead.

The Rule 144A notes will be guaranteed by certain domestic subsidiaries.

Proceeds, together with a $1.25 billion first-lien senior secured credit facility, will be used to repay the company's $2.25 billion second-lien senior secured term loan.

The Atlanta-based paper and building products company is a subsidiary of Koch Industries.

© 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.