By Paul A. Harris
Portland, Ore., June 11 – Coveris Holdings SA priced a $155 million add-on to its 7 7/8% senior notes due Nov. 1, 2019 (existing Caa2/confirmed B-) at 99.875 to yield 7.905% in a quick-to-market transaction on Thursday, according to an informed source.
The reoffer price came toward the rich end of the 99.5 to par price talk.
Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners for the Rule 144A and Regulation S for life offering.
Proceeds will be used to finance the acquisition of Tampa, Fla.-based plastics manufacturer McNeel International Corp., for general corporate purposes and to repay in full the BMO loan used to finance the acquisition of New Zealand-based Elldex Packaging Solutions.
Coveris is a Chicago-based manufacturer of plastic packaging products, formerly Exopack Holdings SA.
| Issuer: | Coveris Holdings SA
|
| Amount: | $155 million
|
| Maturity: | Nov. 1, 2019
|
| Security description: | Add-on to 7 7/8% senior notes due Nov. 1, 2019
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Coupon: | 7 7/8%
|
| Price: | 99.875
|
| Yield to maturity: | 7.905%
|
| Spread: | 630 bps
|
| First call: | Nov. 1, 2016 at 103.938
|
| Trade date: | June 11
|
| Settlement date: | June 16 with accrued interest
|
| Ratings: | Moody's: existing Caa2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 99.5 to par
|
| Marketing: | Quick to market
|
| Original issue: | $325 million priced at par in October 2013
|
| Previous add-on: | $85 million priced at 101 to yield 7.614% on Feb. 10, 2015
|
| Fungibility: | New add-on notes will be fungible with existing notes
|
| Total issue size: | $565 million
|
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