By Aaron Hochman-Zimmerman
New York, April 22 - Nine Dragons Paper Ltd. (BBB-/BBB-) priced its $300 million five-year guaranteed senior bullet notes at 99.493 with a spread of Treasuries plus 505.2 basis points and a coupon of 7 7/8%, according to a market source.
Merrill Lynch was the bookrunner for the Rule 144A and Regulation S deal.
The coupon will step up by 100 bps if the rating falls below BBB- and by 200 bps if it falls below BB.
There is a change of control put at 101.
Proceeds will be used for capital expenditures for the purchase and construction of paper machines and supporting facilities as well as to refinance a portion of its existing bank loans.
Nine Dragons is a Guangdong, China-based paper producer.
| Issuer: | Nine Dragons Paper Ltd.
|
| Amount: | $300 million
|
| Issue: | Senior notes
|
| Maturity: | 2013
|
| Coupon: | 7 7/8%
|
| Price: | 99.493
|
| Spread: | Treasuries plus 505.2 bps
|
| Bookrunner: | Merrill Lynch
|
| Pricing date: | April 22
|
| Settlement date: | April 29
|
| Ratings: | Standard & Poor's: BBB-
|
| Fitch: BBB-
|
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