By Paul A. Harris
St. Louis, Sept. 20 - Berry Plastics Holdings Corp. priced a $425 million issue of non-rated 10-year senior subordinated notes at par to yield 11% on Tuesday night, according to market sources.
Goldman Sachs & Co. ran the books for the Rule 144A with registration rights issue.
Proceeds will be used to partially finance the acquisition of Berry Plastics by Apollo and Graham Partners from GS Capital and JPMorgan Partners for $2.25 billion.
Evansville, Ind.-based Berry Plastics is a manufacturer and marketer of rigid plastic packaging products.
Last Friday Berry Plastics priced $750 million of eight-year second-priority senior secured notes (B2/CCC+) in two tranches via Deutsche Bank Securities, Credit Suisse, Citigroup and JP Morgan.
That transaction included a $225 million tranche of floating-rate notes that priced at par to yield three-month Libor plus 387.5 basis points and a $525 million tranche of fixed-rate notes that priced at par to yield 8 7/8%.
Goldman Sachs & Co., which led the Tuesday night issue, was not part of the syndicate of investment banks that either ran the books or co-managed last Friday's transaction.
| Issuer: | Berry Plastics Holdings Corp.
|
| Amount: | $425 million
|
| Maturity: | Sept. 15, 2016
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Spread: | 627 bps
|
| Call protection: | Five years
|
| Trade date: | Sept. 19
|
| Settlement date: | Sept. 20
|
| Rating: | Non-rated
|
| Distribution: | Rule 144A with registration rights
|
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