Verde/Veritiv upsizes seven-year secured notes to $700 million, to price, allocate on Friday

By Paul A. Harris

Portland, Ore., Nov. 17 – Verde Purchaser, LLC upsized its offering of senior secured notes due 2030 to $700 million from $600 million as it shifted $100 million of proceed from a concurrent term loan, according to market sources.

Price talk for the notes in the 10½% area remains unchanged. That price talk, which surfaced Thursday, came on top of initial guidance.

Reconfirmations were due at noon ET on Friday, and the deal, backing the buyout of Veritiv Corp. by Clayton, Dubilier & Rice LLC (CD&R), is set to price thereafter.

The Rule 144A and Regulation S for life seven-year notes become subject to an initial call after three years at par plus 50% of the coupon.

Goldman Sachs & Co. LLC is the left bookrunner. RBC Capital Markets LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., UBS Securities LLC, BNP Paribas Securities Corp., Mizuho Securities USA Inc., Rabo Securities USA Inc., Natixis Securities Americas LLC, Regions Securities LLC, Citizens Capital Markets Inc., ING Financial Markets LLC, Stifel Nicolaus & Co. Inc. and Scotia Capital (USA) Inc. are the joint bookrunners.

Proceeds plus the downsized $600 million term loan B (from $700 million), as well as an $825 million ABL revolver and $1.12 billion of equity will be used to help fund the buyout of Veritiv, an Atlanta-based business-to-business provider of packaging, publishing and hygiene products, by CD&R in a deal valued at $2.6 billion.

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