By Paul A. Harris
Portland, Ore., May 17 - Longview Fibre Paper and Packaging, Inc. priced an upsized $480 million issue of 8% five-year senior secured notes (B2/B+/) at 99.49 to yield 8 1/8% on Tuesday, according to an informed source.
The yield printed at the tight end of price talk, which had been set in the 8¼% area.
Bank of America Merrill Lynch and CIBC World Markets were the joint bookrunners for the issue, which was upsized from $450 million.
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 issuer is a Longview, Wash., manufacturer of corrugated and solid-fiber containers and other paper products.
| Issuer: | Longview Fibre Paper and Packaging, Inc.
|
| Amount: | $480 million, increased from $450 million
|
| Maturity: | June 1, 2016
|
| Securities: | Senior secured notes
|
| Bookrunners: | Bank of America Merrill Lynch, CIBC World Markets
|
| Coupon: | 8%
|
| Price: | 99.49
|
| Yield: | 8 1/8%
|
| Spread: | 634 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 1, 2013, then callable at a premium
|
| Equity clawback: | 35% at 108.0 until June 1, 2013
|
| Trade date: | May 17
|
| Settlement date: | May 24
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 8¼% area
|
| Marketing: | Roadshow
|
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