Multi-Color selling $500 million PIK toggle holding company notes backing shareholder dividend

By Paul A. Harris

Portland, Ore., Oct. 19 – Multi-Color Corp. began marketing a $500 million offering of LABL Intermediate Holding Corp. five-year senior PIK toggle notes on Monday, according to market sources.

Initial talk has the deal coming with a cash coupon in the low 12% area with an additional 75 basis points for PIK payments.

An investor call is set to take place at 11 a.m. ET on Tuesday.

BofA Securities Inc., Deutsche Bank Securities Inc., Guggenheim, BMO Capital Markets Corp., Barclays, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

The notes become callable after one year at par plus 50% of the coupon.

After the non-call period the notes may be redeemed at par plus 50% of the coupon with proceeds from an initial public offering of shares or a company sale.

The Batavia, Ohio-based label producer plans to use the proceeds to fund a dividend to shareholders.

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