Lecta sets roadshow for €590 million two-part secured notes offering

By Paul A. Harris

Portland, Ore., July 18 – Lecta SA plans to start a roadshow on Tuesday in London for a €590 million two-part offering of senior secured notes, according to a market source.

The notes are coming in tranches of six-year floating-rate notes, which come with one year of call protection, and seven-year fixed-rate notes, which come with three years of call protection.

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.

The roadshow moves to Amsterdam on Wednesday and to Paris on Thursday.

The Rule 144A and Regulation S for life deal is set to price on Friday.

Joint bookrunner Deutsche Bank will bill and deliver. Credit Suisse, BBVA and UniCredit are also joint bookrunners.

Proceeds will be used to refinance debt.

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.

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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