Berry Global sets tranche sizes, guidance in upsized €900 million two-part secured notes offer

By Paul A. Harris

Portland, Ore., Dec. 11 – Berry Global Group Inc. upsized its split-rated two-part offering of senior secured notes (Ba2/BBB-) to €900 million from €725 million, made structural revisions and set initial price talk on Wednesday, according to market sources.

The revised deal is coming in two bullet tranches: €500 million minimum of five-year notes with initial talk of 1% to 1¼%, and €300 million minimum of seven-year notes with initial talk of 1½% to 1¾%.

Prior to revision both tranches had standard call protection. The shorter duration five-year notes were non-callable for two years, while the longer dated seven-year tranche was non-callable for three years.

The roadshow, which got underway on Monday, was set to conclude on Wednesday, and the deal is expected to price on Thursday.

Left lead bookrunner Citigroup Global Markets Inc. will bill and deliver. Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Securities Inc. and Morgan Stanley & Co. LLC are joint bookrunners.

Proceeds from the Rule 144A and Regulation S deal, together with cash on hand, will be used to prepay certain term loans. Incremental proceeds resulting from the €175 million upsizing of the deal will also be used to prepay existing term loans.

Berry Global is an Evansville, Ind.-based manufacturer and marketer of plastic packaging products.

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