By Cristal Cody
Tupelo, Miss., May 27 – CCL Industries Inc. priced $600 million of 3.05% 10-year senior notes (Baa2/BBB) in a Rule 144A and Regulation S offering on Wednesday at a spread of Treasuries plus 240 basis points, according to a market source and a news release.
Initial price talk was in the Treasuries plus 265 bps area with guidance tightened to the 245 bps area, plus or minus 5 bps.
BofA Securities, Inc., BMO Capital Markets Corp., MUFG and Scotia Capital (USA) Inc. were the bookrunners.
CCL Industries held fixed income investor calls for the offering on Tuesday.
The notes will be initially guaranteed by company subsidiaries CCL Industries Corp. and CCL Industries (U.K.) Ltd.
Proceeds will be used to repay debt under the company’s revolving credit facility and for general corporate purposes.
The specialty label and packaging company is based in Toronto.
| Issuer: | CCL Industries Inc.
|
| Guarantors: | CCL Industries Corp. and CCL Industries (U.K.) Ltd.
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | June 1, 2030
|
| Bookrunners: | BofA Securities, Inc., BMO Capital Markets Corp., MUFG and Scotia Capital (USA) Inc.
|
| Coupon: | 3.05%
|
| Spread: | Treasuries plus 240 bps
|
| Trade date: | May 27
|
| Settlement date: | June 1
|
| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Fixed income investor calls
|
| Price guidance: | Treasuries plus 245 bps area, plus or minus 5 bps; initial talk at Treasuries plus 265 bps area
|
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