By Paul A. Harris
Portland, Ore., March 28 - Ontex IV SA priced an upsized €835 million three-part offering of notes on Thursday, according to an informed source.
The Zele, Belgium-based company priced a €320 million tranche of seven-year senior secured fixed-rate notes (Ba3/B+/) at par to yield 7½%.
The yield printed on top of the price talk.
The senior secured fixed-rate notes feature three years of standard call protection. In addition, a special call provision allows the issuer to redeem 10% of those notes annually at 103 during non-call period.
The company also priced a €280 million tranche of seven-year senior secured floating-rate notes (Ba3/B+/) at par to yield Euribor plus 412.5 basis points. The floating-rate tranche was upsized from €250 million, and the notes priced on top of price talk.
In addition, Ontex priced a €235 million tranche of eight-year senior unsecured notes (B3/B-/) at par to yield 9%.
The yield on the senior notes also printed on top of price talk.
Merrill Lynch International and Goldman Sachs International were the joint bookrunners.
The manufacturer of private-label disposable diapers and wipes will use the proceeds to repay credit facility borrowings and a vendor loan note.
| Issuer: | Ontex IV SA
|
| Amount: | €835 million, increased from €805 million
|
| Bookrunners: | Merrill Lynch International, Goldman Sachs International
|
| Co-managers: | Credit Suisse Securities (Europe) Ltd., J.P. Morgan Securities LLC
|
| Trade date: | March 24
|
| Settlement date: | March 31
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Senior secured fixed-rate notes
|
| Amount: | €320 million
|
| Maturity: | April 15, 2018
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 455 bps
|
| Call protection: | Three years (Special call provision allows issuer to redeem 10% of notes annually at 103 during non-call period)
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Price talk: | 7½% area
|
|
|
| Senior secured floating-rate notes
|
| Amount: | €280 million, increase from €250 million
|
| Maturity: | April 15, 2018
|
| Coupon: | Euribor plus 412.5 bps
|
| Price: | Par
|
| Yield: | Euribor plus 412.5 bps
|
| Call features: | Callable after one year at 101, par after year two
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Price talk: | Euribor plus 412.5 bps area
|
|
|
| Senior unsecured notes
|
| Amount: | €235 million
|
| Maturity: | April 15, 2019
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 590 bps
|
| Call protection: | Three years
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 9% area
|
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