Multi-Color/LABL to price $300 million secured notes due 2028 on Wednesday; initial talk 10% area

By Paul A. Harris

Portland, Ore., March 28 – Multi-Color Corp., a wholly owned subsidiary of LABL, Inc., plans to price a $300 million offering of senior secured notes due November 2028 on Wednesday, according to market sources.

The deal, which was set to kick off on a Tuesday morning conference call with investors, is in the market with initial guidance that has the notes coming to yield in the 10% area, according to a trader.

The Rule 144A and Regulation S notes become callable after 2.5 years at par plus 50% of the coupon.

Goldman Sachs & Co. LLC is the left bookrunner. BofA Securities Inc., Barclays, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Securities LLC, HSBC Securities (USA) Inc., BNP Paribas Securities Corp., MUFG Securities Americas Inc., BMO Capital Markets Corp., Mizuho Securities USA Inc., Truist Securities Inc., U.S. Bancorp Investments Inc., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the joint bookrunners.

The Chicago-based supplier of label solutions plans to use the proceeds to fund a potential acquisition, as well as to repay debt under its senior secured asset-based revolver and for general corporate purposes, which may include repaying, redeeming or repurchasing outstanding debt.

The acquisition target is the subject of a non-binding letter of intent. Should that acquisition fail to go forward, proceeds will be used for general corporate purposes as described above.

The issuing entity will be LABL.

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