Smurfit Kappa sets price talk on $250 million and €200 million six-year secured bullets

By Paul A. Harris

Portland, Ore., Sept. 4 - Ireland's Smurfit Kappa Acquisitions set price talk for offerings of six-year senior secured notes (expected ratings Ba2/BB/BB+) on Tuesday, according to a market source.

A $250 million tranche is talked to yield 5% to 5¼%, and a €200 million tranche is talked to yield 5¼% to 5½%.

Books are closed for the dollar-denominated tranche; however, the books for the euro-denominated tranche remain open until 7 a.m. ET on Wednesday.

The deal is expected to price on Wednesday morning, New York time.

Timing on the deal was moved ahead on Tuesday. When announced, the roadshow was set to run into Thursday.

Global coordinator and joint bookrunner J.P. Morgan Securities LLC will bill and deliver for the dollar-denominated tranche. Citigroup Global Markets, which is also a global coordinator and joint bookrunner, will bill and deliver for the euro-denominated tranche.

Credit Agricole CIB, Credit Suisse, Deutsche Bank and RBS are joint bookrunners.

Danske, Davy Securities, HSBC and Lloyds TSB are lead managers.

Proceeds from the Rule 144A and Regulation S for life notes will be used to repay the company's senior subordinated notes due in 2015.

The prospective issuer is a Dublin, Ireland-based producer of paper-based packaging.

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