New Issue: Viskase sells upsized $40 million add-on to 9 7/8% notes due 2018 to yield 9.683%

By Paul A. Harris

St. Louis, April 28 - Viskase Cos. Inc. priced an upsized $40 million add-on to its 9 7/8% senior secured notes due Jan. 15, 2018 (B2/B-/) at 101 to yield 9.683% on Wednesday, according to an informed source.

The reoffer price came on top of price talk.

Jefferies & Co. ran the books for the quick-to-market add-on, which was upsized from $30 million.

Proceeds will be used for general corporate purposes, including working capital, further plant expansions and possible acquisitions.

Viskase is a Chicago-based maker of non-edible cellulose and fibrous and plastic casings used in the meat packing industry for processed meat and poultry products such as sausages, hotdogs and cold cuts.

Issuer:	Viskase Cos. Inc.
Face amount:	$40 million, upsized from $30 million
Proceeds:	$40.4 million
Maturity:	Jan. 15, 2018
Securities:	Add-on to 9 7/8% senior secured notes
Bookrunner:	Jefferies & Co.
Coupon:	9 7/8%
Price:	101
Yield:	9.683%
Call features:	Make-whole at Treasuries plus 50 bps until Jan. 15, 2014, then callable at 104.938, 103.292, 101.646, par on or after Jan. 15, 2017
Equity clawback:	35% at 109.875 until Jan. 15, 2014
Change-of-control put:	101%
Trade date:	April 28
Settlement date:	May 3 with accrued interest
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S
Price talk:	101.0
Original issue:	$175 million priced at 99.305 on Dec. 14, 2009
Total issue size:	$215 million

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