Progroup talks €95 million tap of 5 1/8% secured notes due 2022 at 104.75-105; pricing Tuesday

By Paul A. Harris

Portland, Ore., Dec. 8 – Germany-based containerboard producer Progroup AG talked a €95 million add-on to its 5 1/8% senior secured notes due May 1, 2022 (expected ratings B1/B+) at 104.75 to 105, according to a market source.

Books close at 10 a.m. ET on Tuesday, and the Rule 144A and Regulation S deal is set to price thereafter.

Deutsche Bank AG, London Branch is the global coordinator. Commerzbank and HSBC are joint bookrunners.

The notes are non-callable until May 1, 2018.

Proceeds, together with cash in hand, will be used to fund the acquisition of EnBW Energie Baden-Wuerttemberg AG’s combined heat and power plant in Eisenhuttenstadt, Germany.

The original €250 million issue priced at par on April 23, 2015 as part of a €400 million two-part secured notes transaction that also included €150 million of Euribor plus 450 basis points floating-rate notes due 2022, which also priced at par.

The add-on notes will become fungible with the original notes.

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