Verde/Veritiv talks $600 million seven-year secured notes in 10½% area; books close Thursday

By Paul A. Harris

Portland, Ore., Nov. 16 – Verde Purchaser, LLC talked a $600 million offering of senior secured notes due 2030 in the 10½% area, according to market sources.

Official talk comes on top of initial guidance.

Books close at noon ET on Thursday.

The deal comes in support of the buyout of Veritiv Corp. by Clayton, Dubilier & Rice LLC (CD&R).

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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