By Paul A. Harris
Portland, Ore., April 25 – Trident TPI Holdings, Inc., the parent of Tekni-Plex Inc., priced a $620 million issue of 12¾% senior notes due Dec. 31, 2028 (Caa2/CCC+) at 98.939 to yield 13% on Tuesday, according to market sources.
The coupon came on top of coupon talk. The price came at the rich end of the 97.97 to 98.939 price talk. The yield printed at the tight end of the 13% to 13¼% yield talk.
Pricing tightened significantly from initial guidance that had the deal coming with a 13% coupon with 2 points to 3 points of original issue discount to yield in the mid-to-high 13% area, sources said.
Ahead of that tightening the deal was playing to $2.25 billion of orders, a trader said.
The deal priced very late on Tuesday, and allocations were difficult, as anticipated; hence, the bonds were not actively trading, the source added.
There was heard to be $550 million to $600 million of reverse inquiry behind the deal, a market source said.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Jefferies LLC, BMO Capital Markets Corp. and Credit Suisse Securities (USA) LLC.
The Wayne, Pa.-based provider of health care and consumer material solutions plans to use the proceeds plus a new term loan to pay off its outstanding dollar-denominated and euro-denominated term loans, as well as to repay certain debt under its ABL facility, to redeem all outstanding notes due 2024 and 2025, and for general corporate purposes.
| Issuer: | Trident TPI Holdings, Inc.
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| Amount: | $620 million
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| Issue: | Senior notes
|
| Maturity: | Dec. 31, 2028
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Jefferies LLC, BMO Capital Markets Corp. and Credit Suisse Securities (USA) LLC
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| Coupon: | 12¾%
|
| Price: | 98.939
|
| Yield: | 13%
|
| Spread: | 954 bps
|
| First call: | Dec. 31, 2025 at 106.375
|
| Trade date: | April 25
|
| Settlement date: | May 3
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| Ratings: | Moody’s: Caa2
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| S&P: CCC+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 12¾% coupon at 97.97 to 98.939 to yield 13% to 13¼%
|
| Marketing: | Roadshow
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