By Paul A. Harris
St. Louis, Oct. 15 - Boise Cascade LLC, in conjunction with Boise Cascade Finance Corp., priced $650 million of high-yield bonds in two tranches Friday, according to market sources.
Both tranches came 12.5 basis points inside of price talk.
JP Morgan and Lehman Brothers ran the books for the Rule 144A issues. The co-managers were Deutsche Bank Securities and Goldman Sachs & Co.
The company sold $250 million of eight-year senior floating-rate notes (B1/B+) at par to yield three-month Libor plus 287.5 basis points.
Price talk was Libor plus 300 to 325 basis points.
The tranche had been restructured from the original eight-year fixed-rate notes, which were non-callable for four years.
The Boise, Idaho-based paper and building products company also sold $400 million of 10-year senior subordinated notes (B2/B+) at par to yield 7 1/8%.
Price talk was 7¼% to 7½%.
The proceeds are part of the $3.555 billion financing of Madison Dearborn Partners' acquisition of Boise Cascade's paper, forest products and timberland assets.
| Issuer: | Boise Cascade LLC/Finance Corp.
|
| Amount: | $650 million
|
| Bookrunners: | JP Morgan, Lehman Brothers
|
| Co-managers: | Deutsche Bank Securities, Goldman Sachs & Co.
|
| Pricing date: | Oct. 15
|
| Settlement date: | Oct. 29
|
|
|
| Floating-rate tranche
|
| Amount: | $250 million
|
| Maturity: | Oct. 15, 2012
|
| Security description: | Senior floating-rate notes (restructured from an eight-year non-call-four fixed-rate note)
|
| Coupon: | Three month Libor plus 287.5 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 287.5 basis points
|
| Call features: | Callable immediately at 103, 102, 101, par on or after Oct. 15, 2007
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Price talk: | Libor plus 300-325 basis points
|
|
|
| Fixed-rate tranche
|
| Amount: | $400 million
|
| Maturity: | Oct. 15, 2014
|
| Security description: | Senior subordinated notes
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 302 basis points
|
| Call features: | Make-whole call at Treasuries plus 50 basis points until Oct. 15, 2009, then callable at 103.563, 102.375, 101.1875, par on or after Oct. 15, 2012
|
| Equity clawback: | Until Oct. 15, 2007 for 40% at 107.125
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Price talk: | 7¼%-7½%
|
|
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