By Paul A. Harris
Portland, Ore., July 8 - Greif Luxembourg Finance SCA priced a €200 million issue non-callable 10-year senior notes (Ba2/BB/) at par to yield 7 3/8% on Friday, according to an informed source.
The yield printed in the middle of the 7¼% to 7½% price talk.
Joint bookrunner Bank of America Merrill Lynch was the global coordinator and will bill and deliver. J.P. Morgan Securities LLC and RBS Securities Inc. were also joint bookrunners.
Proceeds will be used to repay non-U.S. borrowings under the company's revolving multi-currency credit facility and for general corporate purposes, including the financing of acquisitions.
The issuing entity is a Luxembourg-based financing unit of Greif Inc., a Delaware, Ohio-based producer of steel, plastic, fiber, flexible and corrugated containers and container board.
| Issuer: | Greif Luxembourg Finance SCA
|
| Amount: | €200 million
|
| Maturity: | July 15, 2021
|
| Securities: | Senior notes
|
| Global coordinator: | Bank of America Merrill Lynch
|
| Joint bookrunners: | J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc.
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 444 bps
|
| Call protection: | Non-callable
|
| Make-whole provision: | Bunds plus 50 bps
|
| Trade date: | July 8
|
| Settlement date: | July 15
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¼% to 7½%
|
| Marketing: | Roadshow
|
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