Lecta exchanges €99.02 million floaters, calls remainder, 8 7/8% notes

By Angela McDaniels

Tacoma, Wash., July 22 – Lecta SA received tenders for €124,354,000 principal amount of its €390 million of floating-rate senior secured notes due 2018 and accepted €99,018,000 principal amount of the notes for exchange, according to a company announcement.

The proration factor is 80.467%.

An exchange offer for the notes began July 18 and ended at 7 a.m. ET on July 22.

In exchange for the accepted notes, the company will issue €100,001,000 of six-year floating-rate notes at a new issue price of 99%.

The exchange ratio is 1.010101, which is equal to the exchange price of par divided by the new issue price.

The coupon on the new notes is Euribor plus 637.5 basis points with a 0% Euribor floor.

Holders will also receive accrued interest up to but excluding the settlement date, which is scheduled for July 27.

Following settlement of the exchange offer, €290,982,000 of floaters due 2018 will remain outstanding. On the settlement date, the company will issue a 30-day redemption notice for these notes and its €200 million of 8 7/8% senior secured notes due 2019.

The exchange is being carried out under Regulation S.

New notes

In addition to the floating-rate notes being issued in the exchange offer, the company sold €124,999,000 principal amount of the new floaters and €375 million principal amount of 6½% seven-year senior secured notes for cash.

Deutsche Bank AG, London Branch (+44 20 7545 8011) and Credit Suisse Securities (Europe) Ltd. (+44 20 7883 8763) are the dealer managers. Deutsche Bank AG, London Branch (+44 20 7547 5000 or xchange.offer@db.com) is the exchange agent.

Lecta is a Barcelona-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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