By Paul A. Harris
Portland, Ore., Feb. 1 – Albea SA priced €150 million of senior holdco pay-if-you-can (PIYC) notes due June 30, 2024 (B2/B) at par on Wednesday, according to a market source.
The notes, issued through Hercule Debtco Sarl, bear interest at 6¾% for cash payments and at 7½% for in-kind payments.
The 6¾% cash yield came at the tight end of the 6¾% to 7% yield talk.
Joint bookrunner Deutsche Bank will bill and deliver. BNP Paribas, Credit Suisse and KKR are also joint bookrunners.
Proceeds will be used to help fund the acquisition of the Paris-based plastic packaging company by PAI Partners and to retain an amount of cash at the issuer for the purpose of pre-funding cash interest payments on the notes.
| Issuer: | Hercule Debtco Sarl (Albea SA)
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| Amount: | €150 million
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| Maturity: | June 30, 2024
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| Securities: | Senior holdco pay-if-you-can (PIYC) notes
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| Bookrunners: | Deutsche Bank (bill and deliver), BNP Paribas, Credit Suisse, KKR
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| Cash coupon: | 6¾%
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| PIK coupon: | 7½%
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| Price: | Par
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| Cash yield: | 6¾%
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| Spread: | 651 bps
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| First call: | Make-whole call at Bunds plus 50 bps until Feb. 15, 2020, then callable at 102
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| Equity clawback: | 40% at 106.75 until Feb. 15, 2020
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| Trade date: | Jan. 31
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| Settlement date: | Feb. 14
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| Rating: | S&P: CCC+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6¾% to 7%
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| Marketing: | Quick to market
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