By Paul A. Harris
Portland, Ore., Oct. 4 – Guala Closures SpA priced a €350 million issue of senior secured floating-rate notes due June 29, 2029 (B1/B+) with a coupon of Euribor plus 400 basis points at 99 on Wednesday, according to market sources.
The spread came at the tight end of the 400 bps to 425 bps spread talk. The issue price came on top of price talk.
Deutsche Bank Securities Inc. (bill & deliver) and UniCredit Capital Markets LLC were the global coordinators and are joint bookrunners with BofA Securities Inc. and Goldman Sachs & Co. LLC.
In connection with the issue, the company announced that lenders agreed to a €54 million upsize to the company’s revolving credit facility, increasing it to €150 million.
The Milano, Italy-based producer of closures for beverages and condiments expects to use the proceeds to fund the acquisition of Yibin Fengyi Packaging Co., Ltd., as well as to fund cash to the Guala Closures balance sheet for general corporate purposes (including bolt-on acquisitions), and to fund a €250 million distribution to the shareholder.
| Issuer: | Guala Closures SpA
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| Amount: | €350 million
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| Issue: | Senior secured floating-rate notes
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| Tenor: | June 29, 2029
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| Coordinators: | Deutsche Bank Securities Inc. (bill & deliver) and UniCredit Capital Markets LLC
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| Joint bookrunners: | BofA Securities Inc. and Goldman Sachs & Co. LLC
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| Coupon: | Euribor plus 400 bps
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| Floor: | 0%
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| Price: | 99
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| Call: | Oct. 13, 2024 at par
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| Trade date: | Oct. 4
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| Settlement date: | Oct. 13
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| Ratings: | Moody’s: B1
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Euribor plus 400 bps to 425 bps at 99
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