New Issue: Viskase sells upsized $175 million 9 7/8% eight-year notes at 99.305 to yield 10%

By Paul A. Harris

St. Louis, Dec. 14 - Viskase Cos. Inc. priced an upsized $175 million issue of 9 7/8% eight-year senior secured notes (B2/B-/) at 99.305 to yield 10% on Monday, according to an informed source.

The yield printed on top of the yield talk. The issue price came in line with the 0.5 point to 1 point of discount talk.

Jefferies & Co. ran the books for the issue, which was upsized from $160 million.

Viskase, a Chicago-based maker of non-edible cellulose, fibrous and plastic casings used in the meat packing industry for processed meat and poultry products such as sausages, hotdogs and cold cuts, plans to use the proceeds to repay substantially all of its existing debt, including its $90 million of outstanding 11½% senior secured notes due 2011, and for general corporate purposes.

Issuer:	Viskase Cos. Inc.
Face amount:	$175 million, increased from $160 million
Proceeds:	$173,784,000 (approximate)
Maturity:	Jan. 15, 2018
Securities:	Senior secured notes
Bookrunner:	Jefferies & Co.
Coupon:	9 7/8%
Price:	99.305
Yield:	10%
Call features:	Make-whole at Treasuries plus 50 bps until Jan. 15, 2014, then callable at 104.938, 103.292, 101.646, par on and after Jan. 15, 2017
Equity clawback:	35% at 109.875 until Jan. 15, 2014
Change-of-control put:	101%
Trade date:	Dec. 14
Settlement date:	Dec. 21
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A/Regulation S for life
Price talk:	10% area yield with approximately 0.5-1 point of OID

© 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.