Published on 6/1/2020 in the Prospect News Investment Grade Daily.
New Issue: WRKCo prices upsized $600 million of 3% notes due 2033 at Treasuries plus 235 bps
By Cristal Cody
Tupelo, Miss., June 1 – WestRock Co. subsidiary WRKCo Inc. priced an upsized $600 million of 3% guaranteed senior notes due Jun 15, 2033 (Baa2/BBB/A) on Monday at a spread of Treasuries plus 235 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Initial price talk was at the Treasuries plus 275 bps area.
The offering was upsized from $500 million.
The notes were sold at 99.764 to yield 3.022%.
BofA Securities, Inc., Wells Fargo Securities LLC, Rabo Securities USA, Inc., SMBC Nikko Securities America Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.
The notes will be fully and unconditionally guaranteed by WestRock Co., WestRock MWV, LLC and WestRock RKT, LLC.
Proceeds will be used to repay all $100 million of WRK MWV’s 9.75% notes due on June 15, 2020 at maturity and to reduce debt under the company’s receivables securitization facility and under its 2015 credit facility and for general corporate purposes.
WestRock is an Atlanta-based paper and packaging manufacturer.
| Issuer: | WRKCo Inc.
|
| Guarantors: | WestRock Co., WestRock MWV, LLC and WestRock RKT, LLC
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2033
|
| Bookrunners: | BofA Securities, Inc., Wells Fargo Securities LLC, Rabo Securities USA, Inc., SMBC Nikko Securities America Inc. and SunTrust Robinson Humphrey Inc.
|
| Senior co-managers: | BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Co-managers: | Commerz Markets LLC, Fifth Third Securities, Inc. and U.S. Bancorp Investments, Inc.
|
| Coupon: | 3%
|
| Price: | 99.764
|
| Yield: | 3.022%
|
| Spread: | Treasuries plus 235 bps
|
| Call features: | Make-whole call at greater of par or Treasuries plus 35 bps before March 15, 2033; thereafter at par
|
| Trade date: | June 1
|
| Settlement date: | June 3
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 275 bps area
|
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