CanPack sets price talk in $1.1 billion two-part senior notes offer, pricing Thursday

By Paul A. Harris

Portland, Ore., Oct. 14 – Poland-based CanPack SA set price talk in its $1.1 billion two-part offering of senior notes (Ba2/BB), according to market sources.

The deal, which is playing to high-yield and emerging markets accounts in Europe and the United States, includes euro-denominated seven-year notes callable after three years at par plus 50% of the coupon, talked in the 2½% area, and dollar-denominated five-year notes, which become callable after two years at par plus 50% of the coupon, talked in the 3¼% area (initial talk on the dollar notes was in the mid-to-high 3% area).

Tranche sizes remain to be determined.

Euro books close at 9 a.m. ET Thursday. Dollar books close at 10 a.m. ET Thursday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Global coordinator and physical bookrunner Citigroup will bill and deliver for the euro-denominated notes. Global coordinator and physical bookrunner Wells Fargo Securities LLC will bill and deliver for the dollar-denominated notes.

BNP Paribas is a passive bookrunner. CaixaBank and PKO BP are the co-managers.

The co-issuer is Eastern PA Land Investment Holding LLC, representing CanPack's operations in the United States.

The metal container supplier, which is based in Krakow, Poland, plans to use the proceeds to repay certain amounts outstanding under its revolver, to redeem its private placement notes and for general corporate purposes, including capital expenditure requirements to construct a new plant in Pennsylvania.

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