Berry Plastics $530.6 million floating-rate notes talked Libor plus 475 bps, pricing at 94 to 94.5

By Paul A. Harris

St. Louis, April 15 - Berry Plastics Corp. set price talk for its $530.6 million offering of first priority floating-rate senior secured notes due 2015 (expected ratings B1/BB-) with a coupon of Libor plus 475 basis points at an original issue discount of 94.00 to 94.50 on Tuesday, according to an informed source.

Market sources were expecting to hear the terms of the deal on Tuesday evening, however none had been heard as Prospect News went to press.

Banc of America Securities LLC, Goldman Sachs & Co. and Lehman Brothers are joint bookrunners for the Rule 144A with registration rights offer.

The notes become callable in year two at 102, with the call premium declining to 101 in year three, and to par in year four.

The security for the notes is the same as that of the existing term loan B, with certain exceptions. The notes will come with a first lien on non-ABL security and a second lien on ABL security.

Proceeds will be used to repay the bridge loan used to fund acquisition of Captive Holdings, Inc.

Evansville, Ind.-based Berry Plastics is a wholly owned subsidiary of Berry Plastics Group, Inc. which is majority owned by affiliates of Apollo Management, LP.

The company manufactures injection-molded and thermoformed plastic products.

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