Published on 5/21/2003 in the Prospect News High Yield Daily.
New Issue: Georgia-Pacific prices $500 million in five-year, 10.5-year tranches
By Paul A. Harris
St. Louis, May 21 - Georgia-Pacific Corp. sold $500 million of high-yield debt on Wednesday in two tranches of senior notes (Ba2/BB+), according to a syndicate source.
The company sold $350 million of bullets due July 15, 2008 at par to yield 7 3/8%. Price talk was 7 3/8% area.
It also priced $150 million of 10.5-year non-call-five notes due Jan. 15, 2014 at par to yield 8%. Price talk on the 10.5-year tranche was 7 7/8% area.
Banc of America Securities, Goldman Sachs & Co., Citigroup and UBS Warburg were joint bookrunners. Deutsche Bank Securities, JP Morgan, Merrill Lynch and Morgan Stanley were joint lead managers. The co-managers were Banc One Capital Markets, SunTrust Robinson Humphrey, TD Securities, BTM, Sumitomo, BNP Paribas and Commerzbank.
Proceeds will be used to repay the company's revolver.
The company manufactures tissue, packaging, paper, building products, pulp and related chemicals.
| Issuer: | Georgia-Pacific Corp.
|
| Amount: | $500 million
|
| Managers: | Banc of America Securities, Goldman Sachs, Citigroup, UBS Warburg (joint books), Deutsche Bank Securities, JP Morgan, Merrill Lynch, Morgan Stanley (joint leads)
|
| Settlement date: | June 3, 2003 (T+8)
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
|
|
| Five-year tranche
|
| Amount: | $350 million
|
| Maturity: | July 15, 2008
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 500 basis points
|
| Calls: | Non-callable
|
| Equity clawback: | Until July 15, 2006 for 35% at 107.375
|
| Rule 144A Cusip: | 373298CA4
|
| Price talk: | 7 3/8% area
|
|
|
| 10.5-year tranche
|
| Amount: | $150 million
|
| Maturity: | Jan. 15, 2014
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 460 basis points
|
| Call features: | Non-callable for five years, then at 104, 102.667, 101.333, 100
|
| Equity clawback: | Three years for 35% at 108.8
|
| Rule 144A Cusip: | 373298CC0
|
| Price talk: | 7 7/8% area
|
|
|
© 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.
