M&G sets talk for downsized, restructured $200-$300 million offering

By Paul A. Harris

Portland, Ore., Feb. 10 - M&G Finance Corp. downsized its offer of seven-year senior secured notes to a $200 million to $300 million range from its previously announced size of $500 million, a syndicate source said on Friday.

Call protection was extended to the lifetime of the notes from previous call protection of four years.

Dealers talked the notes with a 10% coupon, with approximately 10 points of original issue discount, to yield 12%.

Books close at 5 p.m. ET on Monday. The deal is set to price on Tuesday.

J.P. Morgan Securities LLC has the books.

The Rule 144A and Regulation S for life notes are rated BB- by Fitch Ratings. Moody's Investors Service is expected to assign its B3 rating.

Proceeds will be used to finance construction of new PET and PTA production facilities, to pay back intercompany debt and to fund working capital.

The prospective issuer is a financing unit of Houston-based Mossi & Ghisolfi, which produces polyethylene terephthalate resin for packaging applications.

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