Published on 5/25/2011 in the Prospect News High Yield Daily.
New Issue: Exopack prices $235 million seven-year notes at par to yield 10%
By Paul A. Harris
Portland, Ore., May 25 - Exopack Holding Corp. priced an upsized $235 million issue of seven-year senior notes (Caa1/CCC+/) at par to yield 10% on Wednesday, according to an informed source.
The yield printed at the wide end of the 9¾% to 10% price talk.
The deal was led by joint bookrunners Goldman Sachs & Co. and Bank of America Merrill Lynch.
Proceeds, along with proceeds from the downsized $350 million bank loan, will be used to fund the tender offer for the company's 11¼% senior notes due 2014 and to pay a dividend to stockholders.
The bond offering was upsized from $225 million. The company's bank loan was downsized to $350 million from $400 million. With the $40 million overall decrease in the debt financing, the dividend will also be downsized by $40 million.
Exopack is a Spartanburg, S.C.-based full-service paper and plastic flexible packaging products manufacturer.
Issuer: | Exopack Holding Corp.
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Amount: | $235 million, increased from $225 million
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Maturity: | June 1, 2018
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Securities: | Senior notes
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Bookrunners: | Goldman Sachs & Co., Bank of America Merrill Lynch
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Co-managers: | Houlihan Lokey, Inc., Imperial Capital, LLC, Mesirow Financial, Inc., Oppenheimer & Co.
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Coupon: | 10%
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Price: | Par
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Yield: | 10%
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Call features: | Callable on June 1, 2014 at 107.5, 105, 102.5, par on and after June 1, 2017
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Trade date: | May 25
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Settlement date: | May 31
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Ratings: | Moody's: Caa1
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| Standard & Poor's: CCC+
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Distribution: | Rule 144A and Regulation S with registration rights
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Price talk: | 9¾% to 10%
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Marketing: | Roadshow
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