Lecta to price €590 million fixed-, floating-rate notes on Friday

New York, July 18 – Lecta SA plans to price €590 million of new senior secured notes in fixed- and floating-rate tranches on Friday.

The new floating-rate notes will mature in 2022 while the fixed-rate notes will be due in 2023, according to a notice from the issuer.

Tranche sizes are to be determined.

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

Simultaneously with the launch of the notes, Lecta 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.

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

Through the refinancing, Lecta will extend its maturity profile by “six to seven years,” according to the announcement.

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.

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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