By Paul A. Harris
Portland, Ore., March 28 – LABL, Inc. priced a $300 million issue of senior secured notes due Nov. 1, 2028 (B2/B-) at par to yield 9½% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of the 9½% to 9¾% yield talk. Initial guidance was in the 10% area.
The issue was heard to have been playing to $1.9 billion of demand, according to a trader, who added that there had been $200 million of reverse inquiry.
Timing was accelerated. When announced on Tuesday morning the deal was expected to remain in the market until Wednesday.
Goldman Sachs is the left bookrunner. Joint bookrunners are BofA Securities Inc., Barclays, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Securities LLC, HSBC Securities (USA) Inc., BNP Paribas Securities Corp., MUFG Securities Americas Inc., BMO Capital Markets Corp., Mizuho Securities USA Inc., Truist Securities Inc., U.S. Bancorp Investments Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and KKR Capital Markets LLC.
The Chicago-based supplier of label solutions, which does business as Multi-Color Corp., plans to use the proceeds to fund a potential acquisition, as well as to repay debt under its senior secured asset-based revolver and for general corporate purposes, which may include repaying, redeeming or repurchasing outstanding debt.
The acquisition target is the subject of a non-binding letter of intent. Should that acquisition fail to go forward, proceeds will be used for general corporate purposes as described above.
| Issuer: | LABL, Inc.
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| Amount: | $300 million
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| Issue: | Senior secured notes
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| Maturity: | Nov. 1, 2028
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| Bookrunners: | Goldman Sachs & Co. LLC (left books), BofA Securities Inc., Barclays, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Securities LLC, HSBC Securities (USA) Inc., BNP Paribas Securities Corp., MUFG Securities Americas Inc., BMO Capital Markets Corp., Mizuho Securities USA Inc., Truist Securities Inc., U.S. Bancorp Investments Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and KKR Capital Markets LLC
|
| Coupon: | 9½%
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| Price: | Par
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| Yield: | 9½%
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| Spread: | 580 bps
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| Call protection: | 2.5 years
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| Trade date: | March 28
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| Settlement date: | April 3
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| Ratings: | Moody's: B2
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 9½% to 9¾%
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| Marketing: | Drive-by (accelerated)
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