New Issue: Millar Western prices C$150 million five-year first-lien notes at par to yield 9½%

By Paul A. Harris

Portland, Ore., June 13 – Millar Western Forest Products Ltd. priced a C$150 million issue of five-year senior secured first-lien notes (B2/B-) at par to yield 9½% on Thursday, according to an informed source.

RBC Dominion Securities Inc. was the bookrunner and co-lead manager. Guggenheim Securities LLC was also a co-lead manager.

The Edmonton, Alta.-based forest products company plans to use the proceeds to repay debt.

Issuer:	Millar Western Forest Products Ltd.
Amount:	C$150 million
Maturity:	June 20, 2023
Securities:	Senior secured first-lien notes
Syndicate:	RBC Dominion Securities Inc. (sole bookrunner, co-lead manager), Guggenheim Securities LLC (co-lead manager)
Coupon:	9½%
Price:	Par
Yield:	9½%
Spread:	734 bps
First call:	June 20, 2020 at 104.75
Equity clawback:	35% until June 20, 2020
Trade date:	June 13
Settlement date:	June 20
Ratings:	Moody's: B2
	S&P: B-
Distribution:	Private placement

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