Lecta offers new floaters in exchange for existing notes, plans calls

New York, July 18 – Lecta SA announced an exchange in which it is offering new floating-rate notes for its €390 million of existing senior secured floating-rate notes due 2018.

The new notes will have the same terms as a new issue of notes to be sold for cash.

Lecta said on Monday that it has launched a total of €590 million of new senior secured notes, to be divided between floating-rate senior secured notes due 2022 and fixed-rate senior secured notes due 2023. The split between the two tranches is still to be determined.

The new floating-rate notes will pay an interest rate of Euribor plus at least 600 basis points with a Euribor floor of 0%. The new issue price will be no more than 99.

Lecta will determine the amount of new floating-rate notes to be issued in the exchange by multiplying the tendered amount by the quotient of the exchange price of par and the new issue price.

When it closes the new issue and the exchange offer, the company will issue a 30-day redemption notice for the existing floating-rate notes and its €200 million of 8 7/8% senior secured notes due 2019.

Lecta said the financing will extend its maturity profile by “six to seven years.”

The exchange ends at 7 a.m. ET on July 22. The new notes will price that day and the amount of notes accepted in the exchange offer will be announced as soon as possible after the pricing.

Settlement of the exchange is scheduled for July 27.

The exchange is being carried out under Regulation S.

Deutsche Bank AG, London Branch (+44 20 7545 8011) and Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8763) are dealer managers. Deutsche Bank AG, London Branch (+44 20 7547 5000 or xchange.offer@db.com) is exchange agent.

Lecta is a Barcelona, Spain-based manufacturer and distributor of specialty paper for labels and flexible packaging, coated paper for publishing and commercial printing, and other print media.

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