By Paul A. Harris
Portland, Ore., Feb. 9 – Horizon Parent Holdings Sarl, a holding company of Verallia, priced a €350 million issue of senior secured PIK toggle notes due 2022 (CCC+) at par to yield 8¼% on Thursday, according to a market source.
The notes pay an 8¼% cash coupon, which steps up to 9% when in-kind interest payments are made.
Credit Suisse was the lead left global coordinator. Barclays and Goldman Sachs were joint global coordinators. BofA Merrill Lynch and Deutsche Bank were joint bookrunners.
The Paris-based glass packaging manufacturer plans to use the proceeds to pre-fund the payment of cash interest on the notes, as well as for general corporate purposes and to make a distribution to shareholders.
Last October the company withdrew a €500 million offering of five-year PIK toggle notes, a deal which faced resistance from investors, according to market sources.
| Issuer: | Horizon Parent Holdings Sarl
|
| Amount: | €350 million
|
| Maturity: | Feb. 15, 2022
|
| Securities: | Senior secured PIK toggle notes
|
| Lead left global coordinator: | Credit Suisse
|
| Joint global coordinators: | Barclays, Goldman Sachs
|
| Joint bookrunners: | BofA Merrill Lynch, Deutsche Bank
|
| Cash coupon: | 8¼%
|
| PIK coupon: | 9%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 870 bps
|
| First call: | Feb. 15, 2019 at 102
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 16
|
| Rating: | S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Roadshow
|
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