Multi-Color sets talk in $1.39 billion two-part notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., June 13 – Multi-Color Corp. set price talk in its $1.39 billion two-part offering of high-yield notes, according to a market source.

The deal includes $650 million of seven-year senior secured notes (B2/B) talked to yield in the 7% area, tight to initial guidance in the low 7% area.

The unsecured tranche features $740 million of eight-year senior notes (Caa2/B-) talked to yield 10% to 10¼%, well wide of initial guidance in the low 9% area.

Books close at noon ET on Friday.

BofA Securities Inc. is the left bookrunner for the Rule 144A for life deal. Deutsche Bank Securities Inc., Barclays, BMO Securities, Credit Suisse Securities (USA) LLC, Houlihan Lokey and Morgan Stanley & Co. LLC are the joint bookrunners.

The notes in both tranches come with three years of call protection.

Proceeds will be used to help fund the buyout of the company by Platinum Equity LLC and fund the merger of Multi-Color with W/S Packaging Holdings, Inc., a portfolio company of Platinum Equity. The transaction is valued at $2.5 billion.

The issuing entity will be LABL Escrow Issuer, LLC, which is to be merged with and into W/S Packaging.

Debt financing for the merger also includes $1.2 billion of bank debt. Syndication of that debt also got underway on Monday.

Multi-Color is a Cincinnati-based label maker. W/S Packaging is a Green Bay, Wis.-based provider of labels and packaging solutions.

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