Tekni-Plex's $480 million seven-year secured notes talked at a discount to yield 10%-10¼%

By Paul A. Harris

Portland, Ore., May 9 - Tekni-Plex, Inc. talked its $480 million offering of seven-year senior secured notes (Caa1/B-) to price at a discount to yield 10% to 10¼%, a syndicate source said on Wednesday.

Books close at 11 a.m. ET Thursday, and the deal is set to price thereafter.

Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are the joint bookrunners. Jefferies & Co. and Wells Fargo Securities LLC are the co-managers.

The Rule 144A and Regulation S for life notes will become callable after three years at par plus 75% of the coupon.

There is a 101% poison put.

Proceeds, together with cash on hand and proceeds from an equity offering, will be used to repay an existing term loan and senior secured notes.

Tekni-Plex is a King of Prussia, Pa.-based manufacturer of packaging products primarily serving the health care, food and consumer industries.

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