Longview Fibre talks $450 million five-year notes with 8¼% area yield

By Paul A. Harris

Portland, Ore., May 16 - Longview Fibre and Packaging, Inc. talked its $450 million offering of five-year senior secured notes (B2/B+) with a yield in the 8¼% area on Monday, according to an informed source.

The books close at noon ET on Tuesday, and the deal is set to price thereafter.

Bank of America Merrill Lynch and CIBC World Markets are the joint bookrunners for the Rule 144A for life offering.

The notes come with two years of call protection. However, a special call provision allows the issuer to redeem 10% of the notes annually at 103 in each of the first two years.

The notes also feature a 101% poison put.

The notes are secured with first-lien security on property, plant and equipment and a second lien on assets that secured the ABL facility.

Proceeds, along with cash on hand, will be used to fund a cash distribution to the company's shareholders.

The prospective issuer is a Longview, Wash., manufacturer of corrugated and solid-fiber containers and other paper products.

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