By Paul A. Harris
St. Louis, April 16 - Berry Plastics Corp. priced an upsized $680.6 million issue of first-priority floating-rate senior secured notes due Feb. 15, 2015 (B1/BB-) at 94.25 with a coupon of three-month Libor plus 475 basis points on Wednesday, according to an informed source.
The reoffer price came in the middle of price talk that had been set 94.0 to 94.5.
Banc of America Securities LLC, Goldman Sachs & Co. and Lehman Brothers ran the books for the Rule 144A with registration rights issue, which was upsized from $530.6 million and which generated about $641.5 million of proceeds.
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 the 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.
| Issuer: | Berry Plastics Corp.
|
| Face amount: | $680.6 million, upsized from $530.6 million
|
| Proceeds: | $641.5 million (approximate)
|
| Maturity: | Feb. 15, 2015
|
| Security description: | First-priority floating-rate senior secured notes
|
| Bookrunners: | Banc of America Securities LLC, Goldman Sachs & Co., Lehman Brothers
|
| Coupon: | Three-month Libor plus 475 bps
|
| Price: | 94.25
|
| Call features: | Callable after Feb. 15, 2010 at 102, 101, par on and after Feb. 15, 2012
|
| Equity clawback: | Until Feb. 15, 2010 for 35% at par plus applicable coupon
|
| Trade date: | April 16
|
| Settlement date: | April 21
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | Libor plus 475 bps coupon at 94 to 94.5
|
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