By Paul A. Harris
St. Louis, June 10 - Abitibi-Consolidated Inc. upsized its two-tranche high-yield bond offering (Ba2/BB) to $400 million and priced both tranches on Thursday, according to a syndicate source.
The Montreal-based manufacturer of newsprint, paper and other forest products priced $200 million of 7¾% seven-year fixed-rate notes at 99.205 to yield 7.9%. Price talk was 7¾% to 8%.
The company also sold $200 million of seven-year floating-rate notes at par to yield three-month Libor plus 350 basis points. Price talk was in the area of Libor plus 350 basis points.
Citigroup and Banc of America Securities ran the books on the Rule 144A issues. The co-managers were CIBC World Markets, Scotia Capital, National Bank Financial, RBC Capital Markets, ABN Amro, SGC, Credit Suisse First Boston and Tokyo Mitsubishi.
Proceeds will be used to repay bank debt.
The deal was upsized from $350 million.
Issuer: Abitibi-Consolidated Inc.
| Amount: | $400 million (increased from $350 million)
|
| Maturity: | June 15, 2011
|
| Bookrunners: | Citigroup, Banc of America Securities
|
| Pricing date: | June 10
|
| Settlement date: | June 15
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
|
|
| Fixed-rate notes
|
| Amount: | $200 million
|
| Security description: | Notes
|
| Coupon: | 7¾%
|
| Price: | 99.205
|
| Yield: | 7.9%
|
| Spread: | 338 basis points
|
| Call: | Make-whole call at Treasuries plus 50 basis points
|
| Price talk: | 7¾%-8%
|
|
|
| Floating-rate notes
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| Amount: | $200 million
|
| Security description: | Notes
|
| Coupon: | Three-month Libor plus 350 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 350 basis points
|
| Call features: | Callable after June 15, 2006 at 104, 102, 101, par on or after June 15, 2009
|
| Price talk: | Libor plus 350 basis points area
|
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