Verallia cuts notes to €525 million, launches secured notes at 5 1/8%, unsecured at 7¼%

By Paul A. Harris

Portland, Ore., July 24 – Verallia downsized its two-part offering of high-yield notes to €525 million from €860 million, shifting the proceeds to its concurrent term loan, a market source said Friday.

A downsized €300 million tranche of seven-year senior secured notes (B1/B+) from Horizon Holdings III SAS launched at 5 1/8%. The tranche was decreased from €560 million. Earlier in the week a proposed dollar-denominated tranche was withdrawn.

A downsized €225 million tranche of eight-year senior unsecured notes (B3/B-) to be issued by Horizon Holdings I SAS launched at 7¼%. The tranche was decreased from €300 million.

Final orders were due at 8:30 a.m. ET Friday. Timing on the deal was moved ahead. Previously the roadshow schedule carried it into the July 27 week.

As a result of the reduction of the bond portion of the financing, €335 million of proceeds were shifted to the concurrent term loan, increasing it to €1,337,000,000 from €1,002,000,000.

Global coordinator Credit Suisse will bill and deliver. Deutsche Bank is also a global coordinator.

Barclays, BNP Paribas, Nomura and SG CIB are joint bookrunners.

The notes in both tranches come with three years of call protection.

Proceeds will be used to fund the buyout of the Paris-based glass packaging manufacturer by Apollo and to repay debt.

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