By Paul A. Harris and Sara Rosenberg
St. Louis, Mo., July 25 - Greif Bros. Corp. retooled its bond offering Thursday, pricing $250 million of senior subordinated notes due Aug. 1, 2012 (B2/B+) at 99.186 to yield 9%, according to a syndicate source.
Price talk was 8 5/8%-8 7/8%.
Salomon Smith Barney was the bookrunner. Deutsche Bank Securities Inc. was the joint lead.
The company replaced an anticipated euro-denominated tranche of unspecified size with a $50 million upsizing of its term loan C, bringing it to $300 million, and bringing the size of the entire bank loan to $550 million.
Proceeds from the Rule 144A notes will be used to refinance debt.
The issuer is Delaware, Ohio industrial container producer.
Issuer: Greif Bros. Corp
Amount: $250 million
Maturity: Aug. 1, 2012
Type: Senior subordinated notes
Managers: Salomon Smith Barney (books), Deutsche Bank Securities (joint lead)
Coupon: 8 7/8%
Price: 99.186
Yield: 9%
Price talk: 8 5/8%-8 7/8%
Spread: 455 basis points
Call features: Callable with a T+50 basis points make-whole call until Aug. 1, 2007, then at 104.4375, 102.958, 101.479, par on Aug. 1, 2010 and thereafter
Equity clawback: Until Aug. 1, 2005 for 35% at 108.875
Settlement date: July 31, 2002 (T+4)
Ratings: Moody's: B2
| Standard & Poor's: B+
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| Rule 144A CUSIP: | 397624AA5
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