Verde/Veritiv starts roadshow for $600 million seven-year secured notes; initial talk 10½% area

By Paul A. Harris

Portland, Ore., Nov. 13 – Verde Purchaser, LLC began a roadshow on Monday for a $600 million offering of senior secured notes due 2030 backing the buyout of Veritiv Corp. by Clayton, Dubilier & Rice LLC (CD&R), according to market sources.

The deal, which was set to kick off on a Monday morning conference call with investors, is in the market with initial guidance in the 10½% area and is expected to price later in the Nov. 13 week.

The Rule 144A and Regulation S for life seven-year notes become subject to an initial call after three years at par plus 50% of the coupon.

Goldman Sachs & Co. LLC is the left bookrunner. RBC Capital Markets LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp., UBS Securities LLC, BNP Paribas Securities Corp., Mizuho Securities USA Inc., Rabo Securities USA Inc., Natixis Securities Americas LLC, Regions Securities LLC, Citizens Capital Markets Inc., ING Financial Markets LLC, Stifel Nicolaus & Co. Inc. and Scotia Capital (USA) Inc. are the joint bookrunners.

Proceeds plus a $700 million term loan B, an $825 million ABL revolver and $1.12 billion of equity will be used to help fund the buyout of Veritiv, an Atlanta-based business-to-business provider of packaging, publishing, and hygiene products, by CD&R, in a deal valued at $2.6 billion.

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