LABL starts roadshow for $1.21 billion two-part notes in secured and unsecured tranches

By Paul A. Harris

Portland, Ore., Oct. 18 – LABL, Inc. started a roadshow on Monday for a $1.21 billion two-part offering of high-yield notes backing the acquisitions of Multi-Color Corp. and Fort Dearborn Co. by Clayton Dubilier & Rice, LLC (CD&R), according to market sources.

The deal was set to kick off on a Monday conference call with investors and will be marketed through Thursday by means of a telephone roadshow.

The offering features $750 million of seven-year senior secured notes, initial talk 5½% to 5¾%, and $460 million of eight-year senior unsecured notes, initial talk 7¾% to 8%.

Goldman Sachs & Co. LLC is the left bookrunner. BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Securities LLC, Wells Fargo Securities LLC, HSBC Securities (USA) Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., KKR Capital Markets LLC, Mizuho Securities USA Inc., MUFG and Truist Securities Inc. are the joint bookrunners.

The notes in both tranches of the Rule 144A and Regulation S offering come with three years of call protection.

Proceeds will be used to help fund CD&R's acquisition of Multi-Color from Platinum Equity and Fort Dearborn from Advent International, and to put cash on the balance sheet.

Both target entities are label manufacturers that will be combined into a single company called LABL following the acquisition, which is expected to close by the end of 2021.

The combined company is expected to generate about $3 billion of annual revenue.

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