By Paul A. Harris
Portland, Ore., July 24 – Verallia launched and priced a downsized €525 million two-part offering of high-yield notes on Friday, according to a market source.
Horizon Holdings III SAS priced a reduced €300 million tranche of seven-year senior secured notes (B1/B+) at par to yield 5 1/8%. The tranche was decreased from €560 million. Earlier in the week a proposed dollar-denominated tranche of seven-year secured notes was withdrawn.
Horizon Holdings I SAS priced a €225 million tranche of eight-year senior unsecured notes (B3/B-) at par to yield 7¼%. The tranche was cut from €300 million.
The overall deal was downsized from €860 million. As a result of the downsizing 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.
Proceeds will be used to fund the buyout of the Paris, France-based glass packaging manufacturer by Apollo and to repay debt.
| Company: | Verallia
|
| Amount: | €525 million, decreased from €860 million
|
| Global coordinators: | Credit Suisse (bill and deliver), Deutsche Bank
|
| Joint bookrunners: | Barclays, BNP Paribas, Nomura, SG CIB
|
| Trade date: | July 24
|
| Settlement date: | Aug. 7
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Senior secured notes
|
| Issuer: | Horizon Holdings III SAS
|
| Amount: | €300 million, decreased from €560 million
|
| Maturity: | Aug. 1, 2022
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 482 bps
|
| First call: | Aug. 1, 2018 at 102.563
|
| Ratings: | Moody’s: B1
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| Standard & Poor’s: B+
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| Launched at: | 5 1/8%
|
|
|
| Senior unsecured notes
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| Issuer: | Horizon Holdings I SAS
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| Amount: | €225 million, decreased from €300 million
|
| Maturity: | Aug. 1, 2023
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| Coupon: | 7¼%
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| Price: | Par
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| Yield: | 7¼%
|
| Spread: | 681 bps
|
| First call: | Aug. 1, 2018 at 103.625
|
| Ratings: | Moody’s: B3
|
| Standard & Poor’s: B-
|
| Launched at: | 7¼%
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