Belgium's Ontex markets €805 million two-part note deal in Europe

By Paul Deckelman

New York, March 21 - Ontex IV SA was heard by European high-yield market sources to have hit the road on Monday to begin marketing an €805 million two-part bond offering to investors in Europe.

They said that the offering will consist of a €570 million tranche of seven-year senior secured notes (expected ratings Ba3/B+) and a €235 million tranche of eight-year senior notes (expected ratings B3/B-).

The seven-year bonds will have three years of call protection, while the eight-year paper will have four years of protection.

Merrill Lynch and Goldman Sachs & Co. will serve as joint bookrunners on the deal, with Credit Suisse Securities and JP Morgan Securities LLC as co-managers.

The Rule 144A/Regulation S deal will be marketed to investors in London through Tuesday; the roadshow then shifts to Paris and Frankfurt on Wednesday, and to Amsterdam on Thursday, the sources said.

Ontex, a Zele, Belgium-based manufacturer of private-label disposable diapers and wipes, plans to use the deal proceeds to repay credit facility borrowings and a vendor loan note.

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