By Andrea Heisinger
New York, Oct. 20 - Sonoco Products Co. priced $500 million of notes (Baa2/BBB+/) in two tranches on Thursday, an informed source said.
The $250 million of 4.375% 10-year paper was priced at 99.543 to yield 4.432% with a spread of Treasuries plus 225 basis points. The notes were priced tighter than whispered guidance in the 235 bps area and at the tight end of revised talk in the 230 bps area, plus or minus 5 bps.
The tranche has a make-whole call at Treasuries plus 35 bps.
The company also reopened its tranche of 5.75% notes due 2040 to add $250 million. The notes were priced at 101.649 to yield 5.633% with a spread of Treasuries plus 245 bps.
The tranche was priced tighter than talk, which was in the 255 bps area. The notes are callable at a make-whole amount of 30 bps over Treasuries.
Total issuance is $600 million, including $350 million sold on Oct. 25, 2010 at Treasuries plus 190 bps.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds are being used partly to fund the acquisition of Tegrant Holding Corp. and for general corporate purposes.
There is a change-of-control put at 101% on the notes if the Tegrant acquisition is not done or if a related stock purchase agreement is terminated by March 31, 2012.
The consumer and industrial packaging products manufacturer is based in Hartsville, S.C.
| Issuer: | Sonoco Products Co.
|
| Issue: | Notes
|
| Amount: | $500 million
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Change-of-control put: | At 101% if Tegrant acquisition or related stock purchase not done by March 31, 2012
|
| Trade date: | Oct. 20
|
| Settlement date: | Oct. 27
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 1, 2021
|
| Coupon: | 4.375%
|
| Price: | 99.543
|
| Yield: | 4.432%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 235 bps (whispered), 230 bps area (revised)
|
|
|
| Notes due 2040
|
| Amount: | $250 million
|
| Maturity: | Nov. 1, 2040
|
| Coupon: | 5.75%
|
| Price: | 101.649
|
| Yield: | 5.633%
|
| Spread: | Treasuries plus 245 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 255 bps area
|
| Total issuance: | $600 million, including $350 million sold on Oct. 25, 2010 at Treasuries plus 190 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
